What to know about your RRSP

Missed your RRSP deadline? There are steps you can take throughout the year to maximize your retirement savings.

A Registered Retirement Savings Plan (RRSP) is a type of savings plan that is registered with the Canadian government and allows you to make tax-deductible contributions to save towards your retirement. The income you earn in your RRSP is tax exempt, as long as it remains in the plan. Tax is generally payable when you take money out of your RRSP.
It’s never too late to make the most of your RRSP options:

Unused contributions carry forward. You can contribute the lower of 18 per cent of your income from the previous year or the annual RRSP limit for the current year, which is $26,500 for 2019.

Unused contribution room can be carried forward to use in the future. Contributions to a workplace pension plan will reduce the amount you can contribute. In some cases, it may be beneficial for your spouse or common-law partner to make contributions to your RRSP using their available RRSP contribution room.

Save smaller amounts all year. It may be easier for you to set up an account that makes regular automatic contributions to your RRSP throughout the year, rather than try to contribute a larger lump sum of money by the annual deadline.

Explore programs for special RRSP withdrawals. Funds in your RRSP can be used to help Canadians invest in other ways, including in themselves.

One program is the Home Buyers’ Plan, which allows first-time homebuyers to temporarily withdraw up to $25,000 from their RRSP to help build or buy a home. The Lifelong Learning Plan allows you to withdraw amounts to finance full-time training or education for yourself, your spouse or common-law partner.

Funds withdrawn through these programs must gradually be returned to your RRSP over time to avoid tax consequences.

At any time of year, an advisor can work with you to determine which registered accounts and investment options might be suitable for you.

The Government of Canada also offers useful information about RRSPs, as well as related programs and deadlines.