RRSP

Registered Retirement Savings Plan (RRSP)

Invest in your retirement.

What is an RRSP?

An RRSP is a government-registered savings plan that helps Canadians save for retirement. Contributions have annual limits and are tax-deductible, reducing your taxable income for the year. Any investments growth is tax-free until withdrawal, usually during retirement when your income and tax rates are lower. 

Key benefits of an RRSP

  • Tax-deductible contributions: Contributions can reduce your taxable income for the year, potentially lowering your overall tax bill.
  • Tax-deferred growth: Investments grow tax-free until you withdraw the funds, allowing your savings to compound more effectively over time.
  • Flexible investment options: You can hold a variety of investments including stocks, bonds, mutual funds and more.
  • Early withdrawal programs: The Home Buyers' Plan and Lifelong Learning Plan allow for early, tax-free withdrawals from your RRSP for purchasing a home or furthering your education. These withdrawals must be repaid.

Contact our Client Services team

Need assistance setting up a client's RRSP, deciding which investments to hold within, or completing a transaction? We can help. We can help. Email us at [email protected] or phone us at 1-800-387-0614

Frequently asked questions

  • When is the RRSP contribution deadline?

    The deadline falls 60 days after the end of the year. If that day falls on a weekend, the CRA may extend the deadline to Monday.

  • How much can I contribute to my RRSP?

    You can contribute up to 18% of your earned income to a maximum of $25,370 in the 2016 tax year (minus pension adjustments from your company pension plan) in addition to unused contribution room from previous years.

  • How can I find out exactly how much I can contribute?

    Your Notice of Assessment from the CRA will state your maximum contribution room for the current year. If you need to double check, call the CRA at 1-800-267-6999.

  • What is considered ’earned income’?

    Earned income includes salaries, self-employment income, taxable maintenance and alimony payments, and net rental income. It does not include income from pensions or investments. Speak to your financial advisor about other types of income that may be eligible.

  • What if I don’t contribute my maximum amount?

    If you don’t contribute the maximum amount that you’re allowed, you can carry forward the unused portion indefinitely. Your Notice of Assessment will show your unused RRSP contribution room.

  • What if I contribute more than the limit?

    Over-contributions are subject to penalty fees. Where over-contributions exceed $2,000, you will be assessed a 1% per month penalty tax until the excess is withdrawn or additional contribution room becomes available.

  • What can I include in my RRSP investment portfolio?

    You can hold mutual funds, equities, bonds, cash and a variety of other investments in your registered plan. Speak to your advisor to ensure you do not own prohibited investments.

  • What about foreign content levels?

    The 2005 Federal Budget eliminated the foreign property limit for tax-deferred retirement plans. You are no longer restricted to holding up to 30% of foreign investments in your portfolio.

  • Is it a good idea to borrow money to invest in my RRSP?

    Borrowing money to invest can be an effective way to maximize RRSP contributions. One strategy to consider is to apply for your loan in December, defer funding to February (in time to meet the RRSP contribution deadline), defer your first repayment to July and use your tax refund (typically received between April and June) to reduce your loan balance. Speak to your financial advisor to see if this is a suitable investment strategy for you.

  • If my spouse and I decide to open a spousal RRSP, who makes the contributions?

    The higher income earner normally makes the contributions on behalf of his or her spouse. The contributor, normally the higher income earner, would claim a tax deduction for the contribution, and withdrawals would be taxable to the lower income spouse (provided contributions have remained in the plan for at least three years).

  • Can I withdraw from my RRSP?

    You can withdraw from your RRSP but the amount you withdraw will be included in your income as fully taxable ordinary income. You will have to pay withholding tax when you withdraw (note: there are withdrawal restrictions if you have a locked-in RRSP). You might also have to pay additional tax on the withdrawal when you file your tax return for the year with credit for any withholding tax previously withheld.

    The government offers two programs where you can take money out for your RRSP without tax provided the amounts are re-contributed to the RRSP over time. The Home Buyers’ Plan (HBP) lets a first-time homebuyer withdraw up to $25,000 for the purchase of a new home. The Lifelong Learning Plan (LLP) lets a student (or a spouse) withdraw $10,000 per year up to $20,000 to fund full-time education or retraining. Repayments under the HBP must occur over a 15-year period. Repayments under the LLP must occur over a 10-year period.

  • Can I reduce withholding tax by withdrawing $5,000 or less on separate occasions?

    Generally, no. The federal government requires financial institutions to calculate, to the extent possible, withholding taxes on RRSP withdrawals on a cumulative basis. If you make five separate requests for withdrawals of $5,000 or less, each withdrawal may be subject to an escalating withholding tax to a maximum of 30% (31% for Quebec residents).

  • When does my RRSP mature?

    You must wind up your RRSP by the end of the calendar year in which you reach age 71, typically by way of transfer to a Registered Retirement Income Fund (RRIF). However, you may convert to a RRIF at any time.

    Don’t wait for your financial institution to tell you that it’s time to convert. If you don’t choose a RRIF (or annuity) by the end of the year in which you turn 71, the financial institution that holds your RRSP could cash it in and send you the cash less any income taxes which must be withheld. Where this occurs, the total value of your cashed-in RRSP will be added to your income for the year. It’s up to you and your financial advisor to avoid a big tax bill at the end of the year.

Resources and forms

Five questions to ask when transferring your RRSP to a RRIF

RRSP tax calculators


Planning for retirement can be complex, but our RRSP tax calculators make it easier. These tools help you estimate your retirement savings, understand potential tax benefits and plan your financial future with confidence.

Explore our calculators


Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

The content of this web page (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.

This should not be construed as legal, tax or accounting advice.  This material has been prepared for information purposes only. The tax information provided in this document is general in nature and each client should consult with their own tax advisor, accountant and lawyer before pursuing any strategy described herein as each client’s individual circumstances are unique.  We have endeavored to ensure the accuracy of the information provided at the time that it was written, however, should the information in this document be incorrect or incomplete or should the law or its interpretation change after the date of this document, the advice provided may be incorrect or inappropriate.  There should be no expectation that the information will be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.  We are not responsible for errors contained in this document or to anyone who relies on the information contained in this document. Please consult your own legal and tax advisor.