Registered Retirement Savings Plan in Canada

 
A Registered Retirement Savings Plan is a retirement plan that you register and that you or your spouse or common-law partner establish and contribute to. Deductible RRSP contributions can be used to reduce your tax.
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Any income you earn in the RRSP is usually exempt from tax for the time the funds remain in the plan. However, you generally have to pay tax when you cash in, make withdrawals, or receive payments from the plan.
 
Registered Retirement Savings Plans
 
  • Setting up an account
    You set up a registered retirement savings plan account through a financial institution. They will advise you on the types of RRSP and the investments they can contain.
  • How much can you contribute?
  • This amount is determined by your RRSP deduction limit. Your RRSP deduction limit is shown on your latest Notice of Assessment
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  • Can you make withdrawals?
  • Any income you earn in the RRSP is usually exempt from tax for the time the funds remain in the plan. However, you generally have to pay tax when you cash in, make withdrawals, or receive payments from the plan. If your RRSPs are not locked in, you can withdraw funds at any time.
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  • Receiving income from an RRSP
    If you are near retirement, you may be thinking about getting regular income from your RRSP. You generally have a certain amount of flexibility on the types of income you can receive.
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  • Transferring Funds
    At any age up to the end of the year you turn 69, you can transfer your RRSP funds to a registered retirement income fund (RRIF)Starting the year after you establish a RRIF, you receive a minimum amount each year using a predetermined formula based on the value of the RRIF and your age.
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  • Purchase an annuity
    Annuities offer a guaranteed income for life or for a specified period. Your RRSP issuer will not withhold tax on amounts that are used to purchase an annuity. You may have to pay tax on the income when you start receiving payments.