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Overview
You are responsible for monitoring your contribution limits for your different group accounts to ensure you stay within the limits set by the Canada Revenue Agency (CRA). You can confirm your available contribution room by checking your CRA account online.
Note: Any employer contribution, such as a base contribution or a match bonus, also counts toward your total contribution room.
Check your contribution room
To find your exact contribution limits, follow these steps:
- Log in to your CRA account on the web.
- Select RRSP and TFSA.
- Review your most recent Notice of Assessment.
- Note your available room for the current year.
Monitoring your contributions
When you manage your group plan, keep the following in mind:
- Employer contributions: Both your personal deposits and any funds added by your employer use up your available room.
- Automations: If you have a recurring deposit set up in the app, ensure the total for the year doesn't exceed your limit.
- Account types: Limits apply to registered accounts like a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP).
Frequently asked questions
What happens if I contribute too much?
If you exceed your contribution limits, the CRA may apply a tax penalty on the excess amount until you withdraw it.
Do match bonuses count as contributions?
Yes, any match bonus or base contribution provided by your employer is considered a contribution and counts toward your annual limit.
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