Registered Retirement Savings Plan (RRSP)

An RRSP is a retirement savings plan that you establish, that we register, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax.

Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.

You may want to set up a spousal or common-law partner RRSP. This type of plan can help ensure that retirement income is more evenly split between both of you. The benefit is greatest if a higher-income spouse or common-law partner contributes to an RRSP for a lower-income spouse or common-law partner. The contributor receives the short term benefit of the tax deduction for the contributions, while the annuitant, who is likely to be in a lower tax bracket during retirement, receives the income and reports it on his or her tax return.

You may want to set up a self-directed RRSP if you prefer to build and manage your own investment portfolio by buying and selling a variety of different types of investments. For more information on eligible investments.

You can find your RRSP deduction limit by going to one of the following:

  • line (A) of the RRSP Deduction Limit Statement, on your latest notice of assessment or notice of reassessment;
  • a T1028, Your RRSP information for 2012, sent to you by CRA after processing your return;

December 31 of the year you turn 71 year of age is the last day you can make a contribution to your RRSP or you can contribute to an RRSP under which your spouse or common-law partner is the annuitant until the end of the year your spouse or common-law partner turns 71.

You can transfer certain types of payments to an RRSP or from one registered plan to another, such as a registered pension plan (RPP), registered retirement income fund (RRIF), specified pension plan (SPP) or a deferred profit sharing plan (DPSP). Tax tip: You have to transfer certain payments directly. To make sure that these funds are transferred tax-free, you must ask the payer to transfer the funds directly.

Any income you earn in the RRSP is usually exempt from tax for the time the funds remain in the plan. However, you generally have to pay tax when you cash in, make withdrawals, or receive payments from the plan.

If you own locked-in RRSPs, generally you will not be allowed to withdraw funds from them. If you do not know if your RRSPs are locked in, contact your RRSP issuer. If your RRSPs are not locked in, you can withdraw funds at any time.

At any age up to the end of the year you turn 71, you can choose one of the following options for your RRSPs:

  • You can transfer your RRSP funds to a registered retirement income fund (RRIF).

  • You can use your RRSP funds to purchase an annuity.

* Source: CRA
For more information, please contact us at 1 (800) 884-212.

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