Registered Retirement Savings Plans (RRSPs)
With a Registered Retirement Savings Plan (RRSP), you can watch your savings grow tax-free. You won’t pay tax on the money you contribute until you’re ready to make a withdrawal.
RRSP BASICS: WHAT YOU NEED TO KNOW
- Any Canadian (including non-residents) who has employment income and files a tax return can contribute to an RRSP.
- There is no minimum age to contribute.
- Invest up to your RRSP contribution limit, which contribution limit will be noted on your most recent tax return.
- Contribute until December 31 of the year that you turn 71.
- Spousal and individual plans are available.
- You receive a tax receipt for contributions to reduce you taxable income.
- Income from an RRSP is taxable only when withdrawn.
- Your unused annual contribution rolls over for use in future years.
- Funds in an RRSP are eligible for Canadian Government programs that can help you buy your first home, or pay for further education.
- If you're starting small, start saving your money in an RRSP High-Interest Savings Account and, when you reach a minimum of $1000, transfer into a RRSP Fixed GIC for even higher interest.