Register Retirement Savings Plans (RRSPs)

What is an RRSP?
A Registered Retirement Savings Plan is a government approved plan through which you save money for your retirement years. Your contributions, within limits, are tax deductible, and the income earned is tax sheltered. You can have a number of plans.

Why contribute to an RRSP?
You can specifically set aside funds for your retirement that have many benefits, including tax savings now, earning interest and deferring tax until funds are withdrawn. Invest money when you can most afford it during your peak earning years.

Deduction Limits
Your Notice of Assessment from Canada Revenue Agency will state your RRSP deduction limit for the following year. Canada Revenue Agency TIPS line listed in the telephone directory will confirm your deduction limit.

Who can contribute to an RRSP?
Anyone with "earned income" subject to Canadian taxation may contribute to an RRSP. You can make part or all of any contribution to a plan in your spouse's or common-law partner's name.

Can you borrow money to invest in an RRSP?
Yes, but you cannot deduct interest on money you borrow to contribute to an RRSP.

Contributions deadline
You can contribute any time during the year PLUS the first 60 days of the next year to be deducted for the current year. This usually means you have until March 1st or February 29th(Leap Years) as deadline dates.

Spousal RRSP
Part or your entire RRSP deduction limit can be contributed to RRSP for your spouse. You receive the reduction in taxes now and your spouse has a retirement plan for their future. Contact us for more details.

Contact us to request we mail you out an “Understanding All ‘The Basics’” booklet for the current taxation year. Or, stop by any one of our branch locations to pick up your copy.