Quick and simple question for tax experts..

My niece's Tax year 2014 NOA shows available RSP contribution limit of $3600
Her income in the year 2015 was 55K. So can she contribute 18% of 55K (approx 9K) in the first 60 days of 2016 ? Or she must wait to file her 2015 tax return in order to have the 2015 NOA showing the new/higher limits?
I am little confused as all websites say "18% of your earned income from the previous year"

Best would be to wait for NOA.

If You can't, then wait for T4 atleast and see how much amount is shown in the Total Income box.
Some companies pay part of salary as expense, which you have to exclude for RRSP calculation.

Eg : If out of 55K, if 40K is regular salary and 15K expenses, then you can contribute only 18% of 40K to RRSp.

She can definitely contribute to her RRSP now on the earned income for 2015 which may or may not be the whole $55K and do not have to wait for the 2015 NOA. However, for claiming the tax refund on her 2015 tax return, she can only claim on an amount up to $3600 and the remaining contribution would be carried over as 'undeducted contribution' and can be claimed on her future tax returns starting 2016 tax year return. Also, note that one can over contribute up to $2000 in RRSP without any penalties.

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

Thank you for quick reply Pramodji,
That means she can only take benefit of the $ 3600 limit in the 2015 tax file.
Rest of the contribution (if she contributes more than 3600) will be counted in the 2016 tax file.
Perfect, many thanks.