Contribution limits are the maximum you can contribute to a certain type of account within a given year. RRSPs and TFSAs both have contribution limits that are set by the government annually and here are penalties if you exceed your contribution limit.
RRSP contributions is limit set based on a percentage of your earned income to a maximum. This room is then reduced if you have a company pension. You can carry forward any unused contribution room to use in the future. TFSA’s have a set yearly contribution limit that gets added to the combined contribution limit. You can carry forward any unused contribution room from previous years as long as you qualified for it.
The CRA keeps track of both your TFSA and RRSP contribution room. You can call them or go on their website to find your personal contribution room. You can also find your RRSP contribution room on your Notice of Assessment.
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