A new year means new limits and data. Here’s a list of new financial planning data for 2013 (In case you want to compare this to past years, I’ve included old data as well).
Pension and RRSP contribution limits
- The new limit for RRSPs for 2013 is 18% of the previous year’s earned income or $23,820 whichever is lower less the Pension Adjustment (PA).
- The limit for Deferred Profit Sharing Plans is $12,135
- The limit for Defined Contribution Pensions is $24,270
Remember that contributions made in January and February of 2013 can be used as a tax deduction for the 2012 tax year.
| Year | Defined Contribution Pension limit | RRSP limit | DPSP limit |
| (1/2 MP limit) | |||
| 1990 | $11,500 | (Old limits) | $5,750 |
| 1991 | $12,500 | $11,500 | $6,250 |
| 1992 | $12,500 | $12,500 | $6,250 |
| 1993 | $13,500 | $12,500 | $6,750 |
| 1994 | $14,500 | $13,500 | $7,250 |
| 1995 | $15,500 | $14,500 | $7,750 |
| 1996 | $13,500 | $13,500 | $6,750 |
| 1997 | $13,500 | $13,500 | $6,750 |
| 1998 | $13,500 | $13,500 | $6,750 |
| 1999 | $13,500 | $13,500 | $6,750 |
| 2000 | $13,500 | $13,500 | $6,750 |
| 2001 | $13,500 | $13,500 | $6,750 |
| 2002 | $13,500 | $13,500 | $6,750 |
| 2003 | $15,500 | $14,500 | $7,750 |
| 2004 | $16,500 | $15,500 | $8,250 |
| 2005 | $18,000 | $16,500 | $9,000 |
| 2006 | $19,000 | $18,000 | $9,500 |
| 2007 | $20,000 | $19,000 | $10,000 |
| 2008 | $21,000 | $20,000 | $10,500 |
| 2009 | $22,000 | $21,000 | $11,000 |
| 2010 | $22,450 | $22,000 | $11,225 |
| 2011 | $22,970 | $22,450 | $11,485 |
| 2012 | $23,820 | $22,970 | $11,910 |
| 2013 | $24,270 | $23,820 | $12,135 |
| 2014 | $24,270 |
More articles on RRSPs
- How to find out your exact RRSP limits
- The proper use of RRSPs: the one formula approach
- Lesser Known Facts of RRSPs
- Do Spousal RRSPs still make sense?
- Advantages of Self-Directed RRSPs
TFSA limits
- The TFSA limit for 2013 is increasing to $5500.
- The cumulative limit since 2009 is $25,500
| Year | TFSA Limit |
| 2009 | $5,000 |
| 2010 | $5,000 |
| 2011 | $5,000 |
| 2012 | $5,000 |
| 2013 | $5,500 |
More articles on the TFSA
- TFSA Basics: Contributions and Withdrawals
- Understanding the Tax-Free Savings Account (TFSA)
- TFSA or RRSP: Why not do both?
Canada Pension Plan (CPP) data
Lots of changes are happening with CPP but here’s some of the most important planning data.
- Yearly Maximum Pensionable Earning (YMPE) – $51,100
- Maximum CPP Retirement Benefit – $1012.50 per month
- Maximum CPP Disability benefit - $1212.90 per month
- Maximum CPP Survivors Benefit
- Under age 65 – $556.64
- Over age 65 – $607.50
2013 Reduction of CPP for early benefit – 0.54% for every month prior to age 65. At age 60, the reduction for 2013 is 32.4%. This reduction is being phased in over 5 years.
| Year | Max CPP Retirement (monthly) | Max CPP Disability (monthly) | YMPE |
| 2013 | $1,012.50 | $1,212.90 | $51,100.00 |
| 2012 | $986.67 | $1,185.50 | $50,100.00 |
| 2011 | $960.00 | $1,153.37 | $48,300.00 |
| 2010 | $934.17 | $1,126.67 | $47,200.00 |
| 2009 | $908.75 | $1,105.99 | $46,300.00 |
| 2008 | $884.50 | $1,077.52 | $44,900.00 |
| 2007 | $863.75 | $1,053.77 | $43,700.00 |
For more information on CPP
- Four reasons why you should still take CPP early (post 2011 rules)
- Three current debates of Canada Pension Plan
- How much will you get from Canada Pension Plan in Retirement?
- New proposed changes for CPP
- Will Canada Pension Plan (CPP) be there when you retire?
Old Age Security (OAS)
- Maximum OAS – $546.07 per month
- The OAS Clawback (recovery) starts at $70,954 of income. At $114,640 of income OAS will be fully clawed back.
| Year | OAS Max (Monthly) | OAS Clawback starting threshold |
| 2013 | $546.07 | $70,954.00 |
| 2012 | $540.12 | $69,562.00 |
| 2011 | $524.23 | $67,668.00 |
| 2010 | $521.62 | $66,733.00 |
| 2009 | $516.96 | $66,335.00 |
For more information on OAS Clawback:
New Federal Tax Brackets
For 2013, the tax rates have not changes but the tax brackets have increased according to indexation. The new Federal budget this year could change these figures.
- $0 to $11,038 – Personal Exemption
- $11,039 to $43,561 – 15% marginal tax rate
- $43,562 to $87,123 – 22% marginal tax rate
- $87,124 to $135,054 – 26% marginal tax rate
- 0ver $135,055 – 29% marginal tax rate
Remember these rates do not include provincial tax.
For new provincial rates, visit the CRA site
Provincial tax rates are also subject to change when the provincial budgets are released later in 2012.
For more information on tax rates
Jim, do you have a link for the FSCO table of LIF withdrawal percentages for 2012? Thx.
I searched it but could only find the 2011 table:
http://www.fsco.gov.on.ca/en/pensions/policies/active/Documents/L200-410.pdf
I suspect the maximum will not change that much but I’ve been wrong many times before.
Jim