RRSP: Registered retirement savings plan
A useful investment tool to save for retirement or other projects.
2024.29.02
RRSP contribution deadline for 2023
18%
Contribution limit as a % of your income*
71 years old
Age limit to contribute to an RRSP
What is an RRSP?
An RRSP allows you to save and reduce your taxable income while deferring paying taxes until funds are withdrawn. You can contribute to an RRSP until the end of the year you turn 71. Your RRSP will then be converted into an RRIF (or an annuity).
RRSP benefits
Contribute to reduce your taxable income
The money you contribute each year to your RRSP, in accordance with your contribution limit, reduces your taxable income, which helps you pay less taxes.
Invest tax-free
You will pay no taxes on your investments while they grow in your RRSP. The investment income only becomes taxable upon withdrawal from your RRSP.
Using the HBP and LLP to fund projects
Make withdrawals from your RRSP and purchase a home or go back to school while still enjoying a tax deferral.
RRSP contributions
For more information about the withdrawal limits, visit the Canada Revenue Agency's website.
The annual contribution limit is 18% of your earned income in the previous year, up to the established RRSP contribution limit. The RRSP contribution limit for 2023 is $30,780. Check your notice of assessment or contact the CRA to find your RRSP deduction limit.
For the 2023 tax year, you have until February 29, 2024, to contribute to your RRSP. Contributions you make after that date will be claimed when you file your taxes the following year.
Your unused contribution room for the year can be carried forward to use in future years. It will be indicated under the “RRSP Deduction Limit Statement” of the Notice of Assessment you receive every year from the Canadian Revenue Agency.
A pre-authorized contribution (PAC) plan helps you invest in your RRSP each month without even thinking about it. It can make a huge difference by the end of the year!
Set up a PAC plan
on the FÉRIQUE PortalRRSP withdrawals
You can withdraw money from your RRSP as long as the funds are not in a locked-in plan. However, withdrawals will be subject to a withholding tax, and the amount will need to be included as income when filing your income taxes.
However, in some cases, you can withdraw funds from your RRSP while still taking advantage of the tax deferral.
The Home Buyers’ Plan (HBP) allows you to withdraw up to $35,000 from your RRSP tax-free to purchase or build a home.
The funds withdrawn under the HBP must then be repaid to the RRSP over a set period, and certain conditions apply to the plan. To participate in the HBP, you must meet both the HBP and RRSP withdrawal eligibility criteria. For more information about the HBP, visit the Canadian Revenue Agency's website.
The Lifelong Learning Plan (LLP) allows you to make a tax-free withdrawal to finance education for you or your spouse or common-law partner. You and your partner can each withdraw up to $10,000 per year during your participation period.
The funds withdrawn under the LLP must then be repaid to the RRSP over a set period, and certain conditions apply to the plan. Visit the Canada Revenue Agency website.
How can you use your RRSP?
The characteristics of the RRSP make it an ideal growth accelerator to finance various life projects.
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Some useful information
You can make contributions to an RRSP for yourself or your spouse or common-law partner. If you open a spousal RRSP for the benefit of your partner, you’ll be the one receiving the tax deduction because the contributor to the plan receives the contribution receipts, rather than the owner.
Advisory Team
FÉRIQUE Investment Services
Unlike a LIRA that is automatically transferred to your partner, you can select the beneficiary of your RRSP upon your death.
Advisory Team
FÉRIQUE Investment Services
Other tax-free saving tools
* The annual contribution limit is 18% of your earned income in the previous year, up to the established RRSP contribution limit. The RRSP contribution limit for 2023 is $30,780. Check your notice of assessment or contact the CRA to find your RRSP deduction limit.
** Until December 31 the year you turn 71.