How do DPSP contributions affect my RRSP contribution room?

DPSP contributions reduce your RRSP contribution room for the following tax year. For example, if your employer contributes $1,000 to your DPSP in 2022, your personal RRSP contribution room will decrease by $1,000 in 2023.

If you leave the company before the vesting period ends, the DPSP account value will go back to your employer, and your RRSP contribution room will be restored for the following year.

You can check your contribution room online through the CRA’s My Account service. If you have not yet created an account, you can contact the Canada Revenue Agency at 1-800-267-6999.