REGISTERED RETIREMENT
SAVINGS PLAN (RRSP)

To open an RRSP account, simply talk to an advisor or a financial security advisor.

• If you already have an advisor, contact him or her about your project. Their contact information can be found in My Client Space as needed.
• If you do not have an advisor, you can find one now via the Find an Advisor page.

Your advisor can open your RRSP account after analyzing your financial needs. He or she will also advise you on the investment products for your RRSP.

To be eligible for an RRSP, you must:

• Be aged 71 years or under on December 31 of the current year.
• Earn an income and produce a tax return in Canada.

Yes. You must earn an income in Canada to be eligible and have filed at least one tax return in the past. Foreign workers and students can also contribute to an RRSP before obtaining their permanent resident status.

There is no minimum age for having an RRSP and you can contribute to it from the moment you earn an eligible income. However, you must have reached the age of 18 years in the last year to contribute more than $2,000.

You can contribute to your RRSP until December 31 of the year you reach age 71 years. After that time, you must convert your RRSP into a Registered Retirement Income Fund (RRIF) or an annuity.

The contributions to your RRSP reduce your taxable income during a fiscal year, thereby reducing your tax payable at the same time. The RRSP also allows you to grow your investments sheltered from tax to accumulate for your retirement.

You can deposit up to 18% of your annual earned income in your RRSP, up to the maximum allowed for the current year. This maximum is $31,560 for 2024.

Your unused contribution room accumulates from year to year. You can therefore invest more than the maximum allowed if you have not maximized your previous years contributions.

You will find your personal contribution ceiling on the annual tax assessment sent to you by the Canada Revenue Agency (CRA) after you have completed your tax return.

Yes. A tax of 1% per month applies to contributions which exceed your eligible contribution room by $2,000.

Yes. However, you must consider the amounts paid by you and your employer in your retirement plan, since these amounts reduce your annual contribution room.

To determine your eligible RRSP contributions, a pension adjustment (PA) is calculated. It generally represents the amount that your employer and you paid to the pension plan and must be deducted from your contribution room. You will find this information on your notice of assessment from the Canada Revenue Agency (CRA).

Contributions to a spousal RRSP can be beneficial in certain contexts. This is the case when you and your spouse have different tax brackets. Contributions to the RRSP of the spouse with the higher salary allow for a higher deduction for the current year. At retirement, income splitting will reduce the combined tax burden.

In all cases, it is best to talk to your advisor before making contributions to a spousal RRSP.

Absolutely! In Canada, you can use the Home Buyers’ Plan (HBP) to borrow up to $35,000 from your RRSP to buy your first property, without increasing your annual income.

You must fulfil a few eligibility criteria to benefit from the plan. You will then have 15 years to reimburse the funds borrowed from your RRSP account or you must pay tax on the outstanding amount. This option is beneficial for new buyers.

Yes! In Canada, the Lifelong Learning Plan (LLP) allows you to borrow amounts from your RRSP to return to full-time studies. You can withdraw up to $10,000 per year, for a maximum total of $20,000. The LLP can also be used to finance your spouse’s studies.

You will have 10 years to reimburse the funds to your RRSP by paying an annual minimum of 10% of the amounts borrowed.

Yes. If the funds are not contained in a locked-in plan, you can withdraw them at any time. However, the funds withdrawn are added to your taxable income during the year and you will be taxed according to your bracket at the time of withdrawal. It is therefore important to consider the tax consequences of an early withdrawal.

If you already have an RRSP account and you have left Canada, you can continue to contribute as long as you have unused contribution room. Afterward, you must earn an eligible Canadian income to continue to contribute.