iAtoday

Registered plan sponsors should verify, before the end of the year, that plan contribution limits have been respected. If not, we invite them to contact us as soon as possible to make the necessary corrections this year and thereby avoid tax impacts 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 2024, the maximum amounts are:

• Defined Contribution Registered Pension Plan (RPP): $32,490
• Defined Benefit Registered Pension Plan (RPP): $3,610
• Registered Retirement Savings Plan (RRSP): $31,560
• Deferred Profit Sharing Plan (DPSP): $16,245

The Tax-Free Savings Account (TFSA) contribution limit for 2024 is $7,000.

Connected persons of an employer in an RPP

Employers with staff who are connected persons participating in a registered pension plan (RPP) or a simplified pension plan (SPP) must report these persons to the Canada Revenue Agency (CRA) using Form T1007 - Connected Person Information Return. Employers must send this return 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.

Related persons in a DPSP

It is illegal for an employer-related person to participate in a DPSP.

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