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Registered Retirement Savings Plan (RRSPs)

RSPs were designed for Canadians as an incentive to save for retirement during their working phase. 


  • The contributions are Tax-Deductible if contributed during a specific year or 60 days after year end. 

  • You can carry forward unused contribution room to use in future years.

  • Income earned inside the RSP account grows tax free and will only be taxed upon withdrawing from the account.

  • When making RSP contributions, please consider any Pension Adjustment (PA) from the previous year 

Advantages of RRSPs

  • Provides growth of your retirement savings due to the compounding of tax-deferred income within the account as well as the deferral of tax on capital gains.

  • Facilitates income splitting upon retirement when the couple, presumably, is at a lower tax bracket.

  • Plan holders can borrow from the RRSP to fund the purchase of their first home through the

  • Can be a source of additional funds if the need arises. In this case the withdrawals are taxed and remitted to CRA.

    • 10% tax withheld for withdrawals under      C$ 5,000​

    • 20% tax withheld for withdrawals up to       C$15,000

    • 30% tax withheld for withdrawals above     C$15,000

      • Ask us about our strategy to defer the tax deductible and     solutions on income splitting tax-savings.

Disadvantages of RRSPs

  • The withdrawals are taxed as income.

  • RRSP assets can-not be used as collateral.

  • Upon passing the full RSP account becomes part of the Estate and is fully taxable.

  • Assets in an RRSP account are not protected against creditor claims but under certain circumstances. 

(Video Source:Financial Consumer Agency of Canada)


RRSP contribution limit is 18 percent of earned income to a maximum of:


2024 $ 31,560

2023 $ 30,780

2022  $ 29,210

2021  $ 27,830

2020  $ 27,230

2019  $ 26,500 

2018  $ 26,230

2017  $ 26,010

- Unused Contribution room can be applied in subsequent years based on the income. It will help reduce your tax burden when you most need the deductions.

CRA Notice of Assessment will contain your RRSP deduction limit for the following year. 

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