Financial Planning Q 'n A

RRSP contribution limits are based on a percentage of your earned income subject to any contributions made to a registered pension plan in addition to being capped. RRSP contribution room for a year is equal to unused contribution room from prior years plus the lesser of (a) 18% of the previous year's earned income and (b) the current year's maximum contribution limit. The maximum contribution limit for 2015 was $24,930. The maximum contribution limit is scheduled to rise to $25,370 for 2016.