RRSP
Save for retirement and lower your tax bill today.
Book a free consultationAll servicesEverything to know about the RRSP
Who it is for
- Employees and self employed people saving for retirement
- People in higher tax brackets who want a deduction
- Couples who want to split income in retirement
- First time buyers using the Home Buyers Plan
How it works
- You contribute and receive a tax deduction
- Investments grow tax deferred
- Withdrawals are taxed as income
- You convert to a RRIF or annuity by the end of the year you turn 71
What affects the cost
- Fees depend on the investments
- Withdrawals before retirement are taxed and the room is lost
- Contributing above the small buffer is penalized
- Tax savings depend on your tax bracket
Common mistakes to avoid
- Contributing when a TFSA would suit better
- Withdrawing early
- Ignoring spousal RRSP options
- Missing the contribution deadline
An employee in a higher tax bracket contributes before the deadline and uses the refund to top up their TFSA. Illustration only.
Questions people ask
What is the RRSP deadline?
Generally 60 days after the end of the calendar year, for the prior tax year. Check the exact date each year.
Can I use my RRSP to buy a home?
Under the Home Buyers Plan you can withdraw from your RRSP for a first home and repay over time. Rules apply.
What happens at 71?
You must close or convert your RRSP by the end of the year you turn 71, usually to a RRIF.
What it is
A Registered Retirement Savings Plan lets you deduct contributions from your income and grow your investments without yearly tax until you withdraw. It is one of the most effective ways to build retirement income in Canada. I help you decide how much to contribute and what to hold inside it.
How it works
Check your room
Find your limit on your CRA notice of assessment or My Account.
Pick your investments
Choose a mix that fits your goals and comfort with risk.
Contribute regularly
Automatic monthly deposits beat last-minute lump sums.
Review yearly
Adjust as income, family and goals change.
Free calculators
RRSP Tax Savings
General education only, not personalized advice. Calculator by Ativa Interactive.RRSP Withdrawals
General education only, not personalized advice. Calculator by Ativa Interactive.TFSA vs RRSP
General education only, not personalized advice. Calculator by Ativa Interactive.Frequently asked questions
Who can open an RRSP?
Any Canadian resident with earned income and a SIN, up to December 31 of the year they turn 71.
How much can I contribute?
Generally 18% of the previous year’s earned income up to an annual maximum, less pension adjustments, plus any unused room. Your notice of assessment shows your exact limit.
RRSP or TFSA?
An RRSP often suits people in a higher tax bracket now than they expect in retirement, while a TFSA is more flexible. Many people use both. Try the calculator below.
Can I withdraw early?
Yes, but withdrawals are added to your income and tax is withheld. The contribution room is not restored, except through programs like the Home Buyers’ Plan.
What is the Home Buyers’ Plan?
It lets first-time buyers borrow from their RRSP for a home, repaid over 15 years. Check the current withdrawal limit with CRA.
What happens at 71?
By December 31 of the year you turn 71 you must convert the RRSP to a RRIF, buy an annuity or withdraw the funds.
Talk to Manpreet about RRSP
A free, no-obligation call to find the right fit.
Book a free consultationOffered through MS Insurance Inc. by a licensed advisor in AB, SK, BC, NB, NS, QC, MB, ON and PEI. Information is general education, not personal advice. Product availability and rules vary by province.