An RRSP (Registered Retirement Savings Plan) is one of the most powerful retirement tools available to Canadians because it lets you deduct eligible contributions from your taxable income and lets your investments grow tax-deferred until you withdraw them. The catch is that you need to understand your RRSP contribution room (and your deduction limit) so you don’t accidentally over-contribute and trigger penalties.

RRSP contribution room vs. RRSP deduction limit

These two terms get mixed up all the time, but they are not the same thing:

Important detail: you can contribute now and choose to deduct later. For example, you might contribute $10,000 but only deduct $6,000 if you expect your income (and tax bracket) to be higher next year. The unused deduction can be carried forward.

If you want the “official numbers” for your situation, your Notice of Assessment (and your CRA My Account) shows your RRSP deduction limit and available room.

How much is the RRSP contribution limit for 2026?

Your new RRSP room is generally the lesser of:

• 18% of your previous year’s earned income, or
• the annual RRSP dollar limit set by the CRA

For 2026, the RRSP dollar limit is $33,810.

RRSP dollar limit by year

RRSP contribution deadline

The RRSP deadline changes each year. For claiming a deduction on your 2025 tax return, contributions made from March 4, 2025 to March 2, 2026 qualify (this includes contributions to a spouse’s RRSP where applicable).

Who can contribute to an RRSP?

In general, you can contribute to your RRSP until December 31 of the year you turn 71. You can also contribute to a spousal RRSP until December 31 of the year your spouse or common-law partner turns 71 (as long as you have available room).

Over-contributing: the $2,000 buffer and the 1% monthly penalty

If you contribute more than your RRSP deduction limit, the CRA allows a lifetime buffer of $2,000 before penalties apply. If you go beyond that, you may owe a 1% tax per month on the excess amount until it’s fixed.

If you think you over-contributed, review your CRA numbers right away and consider speaking with your advisor or tax professional about the cleanest way to correct it.

What can you hold inside an RRSP?

Most RRSPs let you hold traditional investments like stocks, ETFs, mutual funds, bonds, and GICs. If you use a self-directed account (and the right trustee/custodian), you may also be able to hold certain alternative assets, including investment-grade precious metals.

If you’re specifically interested in adding precious metals exposure, you can explore a few common routes:

• Gold mining stocks (higher volatility, equity risk)
• Why add gold to your RRSP (when it can make sense in a portfolio)
• Buying physical gold (bars/coins held with an approved setup)
• Including other precious metals in your RRSP (silver and more)

Not all bullion qualifies. Generally, eligible bullion must meet “investment grade” purity standards and be held through an appropriate custodial arrangement. If you’re comparing dealers, start here: bullion dealer reviews.

If you want the step-by-step on getting the right RRSP setup for physical precious metals, read: setting up a Gold RRSP (step-by-step).

Two popular RRSP programs: Home Buyers’ Plan and Lifelong Learning Plan

Home Buyers’ Plan (HBP)

The HBP allows eligible first-time home buyers (and certain other qualifying buyers) to withdraw up to $60,000 from their RRSP to buy or build a qualifying home. Withdrawals are not taxed if you follow the rules, but they must be repaid over time (typically within 15 years).

Lifelong Learning Plan (LLP)

The LLP allows you to withdraw up to $10,000 per year (to a maximum of $20,000) from your RRSP to finance full-time education or training for you or your spouse/common-law partner, with repayment generally spread over up to 10 years if you want the withdrawals to remain tax-free.

Quick summary

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