Should I contribute money to RRSP? My RRSP limit is $130,734 what does this mean? why does my refund go up after adding additional contributions to RRSP?

[shanedumas89]

current contributions is 0$ when i use the calculator for RRSP says i have available limit rrsp is 130,734 if i contributed $30,000 my return is higher why ? am i taking away from my rrsp or adding into it? why am oi getting bigger return when contributing more to it ?

[TurboTaxAniqua]

You can check your RRSP contribution limit on your last year Notice of Assessment. Contributions can be deducted from taxable income when filing your tax return, meaning you can end up paying less taxes and saving more money. Deductible RRSP contributions can be used to reduce your tax. Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan. For the 2024 tax year, the RRSP contribution deadline was March 3, 2025, meaning you had until that date to make contributions that can be deducted on your 2024 tax return. 

Everything You Need to Know About RRSPs and Your Tax Return

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