Registered Retirement Savings Plan (RRSP)

An RRSP 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. An RRSP enables you to invest money when you can most afford it – during your peak earning years – to build up a comfortable retirement fund.

 Who is eligible to contribute?

Anyone with earned income subject to Canadian taxation, including non-residents, may contribute to an RRSP. Even if you are not taxable, you should file a tax return to report your earned income and create RRSP deduction room. You can even make a contribution to a plan in your spouse’s or common-law partner’s name. You, as the contributor, are still entitled to the tax deduction. Contributions can be made until the end of the year in which the plan holder’s 69th birthday occurs.

Advantages of an RRSP

• Provides a shelter from tax.  Any profits made on investments within an RRSP account are not immediately taxable to you as income.
• Reduces current income taxes.  Your taxable income is reduced by the amount you contribute to your RRSP – up to a certain point.

RRSP Investment Options

You can choose from a number of different investments for your RRSP, including:

• High Interest Savings Account
• GICs
• Mutual funds
• Stocks and bonds

Home Buyers’ Plan

Each eligible RRSP holder can withdraw up to $25,000 to buy or build a qualifying residence.  You then have 15 years to repay your RRSP, tax free.

Life Long Learning Plan

You can withdraw up to $10,000 each year from an RRSP to finance full-time training or higher education.  Repayment is required in equal payments over a 10-year period starting a year after the last year of the program.

Still have questions? Visit our RRSP Frequently Asked Questions page.

For peace of mind in planning for your retirement, visit or call us at SASCU Wealth.

Mutual funds and other securities are offered through Qtrade Advisor, a division of Qtrade Securities Inc., member IIROC and CIPF. Mutual funds are also offered through Qtrade Asset Management Inc., member MFDA.