Ontario Rrsp Calculator 2015
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Reviewed by Calculator Editorial Team
Registered Retirement Savings Plans (RRSPs) are a key part of Canadian retirement savings. This calculator helps you determine your maximum RRSP contributions for 2015, considering Ontario-specific rules and your income.
How RRSPs Work
An RRSP is a tax-sheltered investment account that allows you to defer income taxes on contributions and investment earnings until you withdraw the funds in retirement. Here's how it works:
Contributions
You can contribute up to the annual limit, which is adjusted annually. In 2015, the maximum contribution was $25,000 for individuals under 71 years old.
Tax Benefits
Contributions reduce your taxable income, and withdrawals in retirement are taxed as income. The government offers a lifetime capital gains exemption for RRSP withdrawals.
Investment Options
RRSPs can hold a wide range of investments, including stocks, bonds, mutual funds, and guaranteed investment certificates (GICs).
Important Note
RRSP contributions are not refundable if you withdraw them before age 71. The government may assess a tax penalty if you withdraw contributions before age 71.
2015 Contribution Limits
For 2015, the RRSP contribution limits were as follows:
| Age Group | Maximum Contribution |
|---|---|
| Under 71 | $25,000 |
| 71 and over | $25,000 |
The $25,000 limit applies to both individuals and couples. However, if you're married and both you and your spouse contribute to your own RRSPs, the total combined contribution can be up to $50,000.
Formula Used
Maximum RRSP Contribution = Min(Annual Limit, Your Income × 18%)
Where Annual Limit is $25,000 for 2015
Worked Examples
Example 1: Single Contributor
John is 35 years old with a 2015 income of $50,000. His maximum RRSP contribution would be:
$50,000 × 18% = $9,000
Since $9,000 is less than the $25,000 limit, John can contribute $9,000.
Example 2: Married Couple
Sarah and David are both 40 years old. Sarah earns $60,000 and David earns $40,000. Their maximum combined RRSP contribution would be:
Sarah's contribution: $60,000 × 18% = $10,800
David's contribution: $40,000 × 18% = $7,200
Total: $10,800 + $7,200 = $18,000
Since $18,000 is less than the $50,000 combined limit, they can contribute $18,000 total.
Frequently Asked Questions
The maximum RRSP contribution limit for 2015 was $25,000 for individuals under 71 years old. The same limit applied to those 71 and over.
No, the maximum contribution limit for 2015 was $25,000. However, if you're married and both you and your spouse contribute to your own RRSPs, the total combined contribution can be up to $50,000.
RRSP contributions reduce your taxable income, which lowers the amount of income tax you owe. Withdrawals in retirement are taxed as income.
Yes, you can withdraw RRSP contributions at any time, but they are not refundable. The government may assess a tax penalty if you withdraw contributions before age 71.