Glossary term
RRSP deduction limit
The RRSP deduction limit is the maximum RRSP, PRPP, SPP, and eligible spousal-plan contribution amount that may be deducted for a tax year.
Plain meaning
What RRSP deduction limit means
The RRSP deduction limit is not the same thing as the amount contributed in the year. It is the deduction capacity CRA calculates from unused room, earned income, annual limits, pension adjustments, pension adjustment reversals, and past service pension adjustments.
Calculation context
How OpenBook uses it
RRSP room and catch-up calculators use this term to separate three related ideas: how much room may be available, how much has already been contributed, and how much could still be deducted or contributed under the assumptions entered.
OpenBook estimates can help frame the calculation, but CRA's My Account, notice of assessment, or reassessment remains the practical source for a personal RRSP deduction limit.
Common boundary
Contribution, deduction, and room
A contribution is an amount paid into a plan. A deduction is the amount claimed on the tax return. Unused room can carry forward, and unused contributions may exist when contributions were made but not yet deducted. These distinctions matter when comparing RRSP room, tax savings, and catch-up planning.
Primary references
These official sources explain the CRA terminology and calculation components behind the term.