Your client’s unused RRSP contribution room is $46,000. He contributes $15,000 in the current taxation year. How much RRSP contribution room can he carry forward?
Unused RRSP contribution room can be carried forward indefinitely. The carry-forward amount is the unused room minus the current year’s contribution: $46,000 - $15,000 = $31,000. The feedback from the document states:
"Any RRSP contribution room that is not used in a taxation year can be carried forward to be used in future years. There is no limit on the amount that can be carried forward. In this example, $46,000 - $15,000 = $31,000."
[Reference: Chapter 6 – Tax and Retirement PlanningLearning Domain: The Know Your Client Communication Process, , , ]
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