# RRSP deduction limit - definition

This refers to the amount you can deduct for the contributions you made to your RRSP or to your spouse or common-law partner's RRSP. It is based, in part, on your previous year's earned income (excluding transfers to your RRSP of certain types of qualifying income). Pension adjustments (PAs), past service pension adjustments (PSPAs), pension adjustment reversals (PARs), and your unused RRSP deduction room, are also used to calculate the limit.

For 2008, the maximum contribution limit is $20,000. However, if you did not use all of your RRSP deduction limit for the years 1991 to 2007, you can carry forward the amount you did not use to 2008. Therefore, your RRSP deduction limit for 2008 could be more than $20,000.

Your RRSP deduction limit for 2008 is shown on your Notice of Assessment or Notice of Reassessment for 2007, or, if CRA sent you one, on Form T1028, Your RRSP Information for 2008. You can carry forward indefinitely any part of your RRSP deduction limit accumulated after 1990 that you do not use.