RRSP Contributions: Timing, Room, and the January–March Confusion

RRSP Contributions: The January–March Rules You Must Know

RRSPs are a powerful tax tool, but many people get tripped up by contributions made early in the year. The biggest mistakes happen around January to March (1st 60 days) contributions, so let’s focus on what really matters.

1. RRSP contribution room comes first

Before anything else, this rule is non‑negotiable:

You must have enough RRSP contribution room available at the time you make a contribution.

Your RRSP room for a year is based on:

• 18% of your prior year’s earned income (up to the annual limit), plus
• Any unused RRSP room from earlier years

Your new room becomes available on January 1 each year and is shown on your Notice of Assessment.

2. What room is needed for January–March 2026 contributions?

Any RRSP contributions you make between January 1 and March 1, 2026 must fit within your 2025 RRSP contribution room.

That same 2025 room must cover:

• Contributions made from March–December 2025, and
• Contributions made from January–March 2026

You cannot use income earned in 2026 to justify contributions made in early 2026. That income won’t create RRSP room until January 1, 2027.

3. You must declare January–March 2026 contributions on your 2025 tax return

This is a key point many people miss:

All RRSP contributions made from January to March 2026 must be reported on your 2025 tax return.

This is true even if:

• You do not deduct them in 2025
• You plan to carry the deduction forward to a future year

Declaring and deducting are two different things.

4. Declaring vs Deducting: not the same thing

• Declaring a contribution means telling the CRA you made it
• Deducting a contribution means using it to reduce your taxable income

You may choose to:

• Declare a January–March 2026 contribution on your 2025 return, but
• Delay the deduction until 2026 or later

This can make sense if you expect to be in a higher tax bracket later.

5. Choosing when to deduct does NOT create contribution room

A common misunderstanding is thinking you can “assign” a January–March contribution to a later year to avoid overcontributing.

You cannot.

• You can choose when to deduct the contribution
• You cannot choose when the contribution uses up room

The room is used up when the contribution is made, not when it is deducted.

The bottom line

Here’s what people really need to remember:

• January–March 2026 contributions must be reported on your 2025 tax return
• You must have enough 2025 RRSP room to cover:
  • March–December 2025 contributions and
  • January–March 2026 contributions
• You may delay the deduction, but never the room requirement
• Overcontributing can lead to penalties

When in doubt, check your Notice of Assessment before contributing — it can save you from an expensive mistake.