YES. If your T4 income (salary/bonus) is at least $140,000 you can contribute $24,930 to an RRSP. If you become a PPP plan member in the same year, and start a Defined Contribution (DC) retirement savings plan, you can take an additional personal tax deduction of $23,800.
Corporation (DC): $ 1,400 ( 1% / 140,000)
Owner/Employee: $ 23,800 (17% / 140,000)
Total $ 25,200 (18%)
Your PPP contributions will generate a Pension Adjustment of $25,200, which will impact your RRSP contribution in the following year (2016). Thus, in the current year, your personal tax deduction is the sum of:
RRSP $ 24,930
DC PPP $ 23,800
Total $ 48,730
Note that the RRSP contribution limit can be reduced if the PPP member had any earned income from any employer or self-employment in the year 1990. It is important to remember that a special rule applies to connected persons such as members of PPPs, if they had earned income in the year 1990, which can grind down their 2015 RRSP contribution room. Most people born after 1972 are typically not impacted by that rule since they are under the age of 18 years.
To learn more about the PPP, contact us to speak to an advisor and receive a complimentary retirement illustration.