RRSP carry-forward rules

Commencing with the 1991 tax year, you’ve been able to carry forward the unused portion of your RRSP contribution room to subsequent years.

If you expect a change in your income in the near future— a change that might see you bumped up into a higher tax bracket—it might make sense to consider delaying your RRSP contributions until then. However, you must also consider the loss of tax-sheltered investment growth by building up your RRSP later rather than earlier.

Tax tip: Where funds are limited and you’re in a lower tax bracket, consider if a Tax-Free Savings Account (TFSA) contribution might make more sense (see topic 70).