Your 2016 contributions to your Registered Pension Plan ("RPP") are deductible in the year they are contributed, 2016. Your 2017 RRSP deduction limit is based on a calculation that included either the value of the RPP contributions made or the value of the retirement benefit earned in 2016, this is reported as a Pension Adjustment, "PA", box 52 on your T4. The PA will always reduce the following years RRSP Deduction Limit, i.e 2016 RRSP deduction limit was reduced by your 2015 PA amount, and grew by your 2015 Earned Income. Your Notice of Assessment would report your RRSP Deduction Limit Statement for the year, giving you your deduction limit for the year, a calculation that includes the amount of room earned and the PA amount reducing it.
