R R S P

By contributing to an RRSP, you’ll reduce your taxable income. Your savings will grow tax-free until you’re ready to use them for retirement or another savings goal.

Use your RRSP to buy your home, without paying  tax

  • Withdraw up to $35,000 per borrower and up to $70,000 per couple
  • You have 15 years to pay back the amount withdrawn, interest-free

Use your RRSP to go back to school

  • Full-time studies for you or your spouse
  • Total withdrawal limit of $20,000 over 4 years
  • 10-year withdrawal payback period

What is an RRSP?

A Registered Retirement Savings Plan (RRSP) is a savings plan, registered with the Canadian federal government that you can contribute to for retirement purposes.

When you contribute money to a RRSP, your funds are “tax-advantaged”, meaning that they’re exempt from being taxed in the year you make the contribution. Any investment income earned from investments held within the RRSP can then grow tax-deferred, as long as the money remains within the RRSP, until it’s withdrawn.

RRSP contributions are tax-deductible, meaning that they can be deducted on your current year tax return, potentially reducing the total amount of taxes you pay.

benefits of investing in an RRSP?

  • Tax-Deferred Savings: Any investment income earned on investments held within the plan is tax-deferred, as long as it remains in your RRSP.
  • Tax Deductions: Your RRSP contributions are tax-deductible and may help to reduce the total amount of income tax you pay.
  • Optimizing Deductions: You can carry forward your unused RRSP contribution room from years of lower income and use it in future years when your income may be higher. This can help you benefit from tax savings when you’re in a higher tax bracket.
  • Income Splitting: If you earn more than your spouse or common-law partner, contributing to a spousal RRSP may help reduce the total amount of tax you pay.
  • Financing your First Home or Education: You can withdraw money from your RRSP without being immediately taxed to pay for your first home or education, under the Home Buyers’ Plan or Lifelong Learning Plan (LLP)2.