RETIREMENT PLANNING · BURLINGTON
Retirement planning starts with knowing your room.
Two CRA numbers decide how much you can put into a TFSA and an RRSP. Here is how each one works.
RRSP room: 18% of last year's income
New RRSP room is 18% of last year's earned income, to a yearly dollar maximum. The CRA's maximum is $32,490 for 2025 and $33,810 for 2026.
- 18%of last year's earned income
- $32,490dollar maximum for 2025
- $33,810dollar maximum for 2026
At $95,000 of earned income, 18% is $17,100, which is under the 2026 maximum. Try your own income.
CRA, How contributions affect your RRSP/PRPP deduction limit; CRA, MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE
TFSA room: it starts at 18 and adds up
For a Canadian resident, TFSA contribution room starts to accumulate when you turn 18. Each year adds the CRA's dollar limit for that year. These are the limits from 2009 to 2026.
| Year | CRA limit | Running total |
|---|---|---|
| 2009–2012 | $5,000 a year | $20,000 |
| 2013–2014 | $5,500 a year | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016–2018 | $5,500 a year | $57,500 |
| 2019–2022 | $6,000 a year | $81,500 |
| 2023 | $6,500 | $88,000 |
| 2024–2026 | $7,000 a year | $109,000 |
| Room if you turned 18 by 2009 and never contributed | $109,000 |
CRA, Before you contribute to a TFSA; CRA, MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE
Money you take out comes back
When you withdraw from a TFSA, you regain the same amount as new contribution room on January 1 of the following year. The annual dollar limit is added at the same time.
So money taken out in 2026 counts as room again from January 1, 2027, on top of that year's limit.
CRA, Calculate your TFSA contribution room
What to bring to a first meeting
- Your TFSA room from CRA My Account. It is the figure that counts, and we start from it.
- Last year's earned income. It sets your new RRSP room.
- What you have put in and taken out. A rough list is enough.
- Your questions. Write them down.
BOOK A REVIEW
Talk it through, room first.
Leave a number or an email and say what you would like to look at. Bring your CRA figures if you have them.
Or call 905-555-0157hello@halvane.example
