iAtoday

Annual contribution limits

Before the end of the year, registered plan sponsors are encouraged to verify that contribution limits have been respected. If not, we invite them to contact iA Financial Group as soon as possible, as corrections made in 2023 will help avoid tax repercussions and administrative procedures with the authorities concerned.

For registered plans, the limit is 18% of an individual’s earned income¹ up to a maximum. For 2023, the limits are as follows:

• Defined contribution registered pension plan (RPP): $31,560
• Defined benefit registered pension plan (RPP): $3,506.67
• Registered retirement savings plan (RRSP): $30,780
• Deferred profit-sharing plan (DPSP): $15,780

The tax-free savings account (TFSA) contribution limit for 2023 is $6,500.

Persons connected to the employer in an RPP

Employers with connected persons participating in a registered pension plan (RPP) or a simplified pension plan (SPP) must file a return with the Canada Revenue Agency (CRA) using Form T1007 - Connected Person Information Return. This return must be sent to the CRA within 60 days of the date a connected person begins to participate in an RPP or an SPP.

The penalty for late filing is $25 per day for up to 100 days.

Persons related to the employer in a DPSP

It is illegal for persons related to the employer to participate in a DPSP.

¹ Previous year’s earned income for RRSPs and current year’s earned income for other registered plans.