We should all be thinking about our future.  Planning ahead means investing in an RRSP to help reduce our taxes.

What is an RRSP?

The Registered Retirement Saving Plan is a retirement account that was set up by the Canadian government in 1957 to help Canadians save for retirement.

How Does an RRSP Work?

Basically, the account is a tax-deferred program.  This allows Canadians to defer paying taxes to the CRA on deposits made.  RRSPs are a great strategy to reduces your taxes now while saving for the future.

How to Withdraw from your RRSP Without Paying Tax

Prematurely withdrawing from your registered account before retirement will trigger a penalty. However, there are some exceptions to this rule including the Home Buyer’s Plan (HPB) and The Lifelong Learning Plan (LLP).

What is the RRSP Deduction Limit?

The Registered Retirement Savings Plan deduction limit is the maximum sum that Canada allows us (taxpayers) to deduct from our income when calculating tax liability.  This maximum is set each year by the CRA and can be found on your  T1028.

RRSP Calculators

Are you contributing enough to your nest egg?  Retirement calculators can help you see how changing what you put in your registered account can affect your retirement income.   

RRSP Contribution Deadline

The deadline for a contribution is always 60 days after the end of the previous year to be eligible for a deduction.  Always check with your financial institutions about how they are able to accommodate deadlines.

Best RRSP Mutual Funds in Canada

Mutual funds remain to be a popular investment in Canada. And what’s better? You can invest in mutual funds through your RRSP to help build your retirement savings. If you’re considering investing, here’s our list of the best RRSP mutual funds in Canada. We’ll also explore the different types of mutual funds and what to consider when choosing one of these investments. Continue reading to learn more. What are RRSP Mutual Funds? Let’s first talk about mutual funds. Operated by a group of fund managers, they are professionally managed investment portfolios that consist of money pooled from a variety of investors. The fund manager selects a variety of assets or securities. These can include bonds, stocks, and more. Each fund has a specific objective, such as to generate income, achieve high growth, or to track an index. The fund manager chooses securities based on the goal of the fund. There are more than 5,000 mutual funds in Canada, carrying different

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Group RRSP: What to Know

Group RRSPs are a great way to save for retirement. If you’re part of a group of employees who want to join together to save for retirement, a group RRSP might be the right option for you. Often, group RRSPs are set up by an employer as a part of your employment benefits. Perhaps you’re here to learn more about how they work before enrolling. In this article, we’ll discuss what group RRSPs are and how they work. We’ll also look at some of the benefits of using a group RRSP. What is a group RRSP? A group Registered Retirement Savings Plan (RRSP) is a savings vehicle. It combines the experience of investing with your peers and the administrative ease of an employer-sponsored plan. It functions as an employer-sponsored retirement plan, allowing employees to jointly contribute and control their collective investment strategies to maximize their retirement income. The contributions are pre-tax, which means that tax deductions are immediate. Thereby allowing

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RRSP Tax Deduction

If you’re like most Canadians, you probably think of your Registered Retirement Savings Plan (RRSP) as simply a retirement savings account. While it is true that your RRSP can hold cash and other investments for your nest egg, it’s also a powerful tax tool. In fact, the Canada Revenue Agency (CRA) calls the RRSP the “single most important vehicle” for retirement savings. The main tax benefit of a RRSP is investment income is sheltered from tax. But another notable benefit is the RRSP tax deduction. So what is the RRSP tax deduction? And how exactly does it work? Let’s take a closer look below. What is the RRSP tax deduction? Most people are familiar with the RRSP, or Registered Retirement Savings Plan. This is a retirement savings account that you can open with a financial institution, and it offers a number of benefits, including tax advantages. An RRSP is a registered account which means it’s subject to special rules surrounding

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How to Withdraw Money from RRSP

If you’re here, you’ve probably come across an unexpected expense or there’s something you want to invest in, such as a home or education. You may be considering a withdrawal from your RRSP to cover the cost at hand. It’s a good thing you decided to read up on RRSP withdrawals before actioning one because there are several things to consider! In this article, we’ll explore everything you need to know before making a withdrawal and how to withdraw money from RRSP accounts, if you really need to. What is a RRSP? RRSP stands for Registered Retirement Savings Plan. The account was originally introduced in 1957 as a part of the Canadian Income Tax Act. It is a special account used to save for retirement and is equipped with various tax advantages. The main tax benefit is investment income, such as capital gains and dividends, is sheltered from tax. There are restrictions on the account to encourage plan holders to

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Locked-In Retirement Accounts (LIRAs) In Canada

We’ve talked about RRSPs (the most well-known savings account that helps Canadians save money for retirement) and RRIFs (where all that money you saved eventually goes), but now, let’s pivot to LIRAs —or Locked-In Retirement Accounts. And it’s here where employer pensions come into play. What are Locked-In Retirement Accounts (LIRAs)? Did you know: The nature of work, however, has drastically changed in recent years. The days when you’d start with a company after graduating high school or university/college and stay there for 40 years are mostly over. Now, it’s not uncommon to hold several positions at a variety of companies over the course of a career. Career pivoting, contract work, and job-hopping are certainly more normalized than before. So if you’re fortunate enough to have a job that offers a pension…what happens to it if you leave the position? This is where Locked-In Retirement Accounts (LIRAs) enter the chat. Simply put, if you leave your company or end up

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What Is A RRIF And How Does It Work?

Have an RRSP? Well, one day —depending on how close you are to retirement — it’ll have to become an RRIF. What do you think about when you hear the word ‘retirement‘? [If you’re daydreaming now, we’ll wait…] Certainly no more early mornings or commutes, but how about more travel? Maybe fully immersing yourself in what was once a weekend hobby like crafting, gardening, or writing. Alas, a key piece in the retirement puzzle is, of course, money. You save and save and save for it —dutifully contributing to an RRSP. Then what? That’s where RRIFs come into play. What is a RRIF? RRIF stands for Registered Retirement Income Fund. Much like its name suggests, it gives you a steady income in retirement. Even better, they’re one of the most flexible and tax-effective ways of generating income in retirement. Three reasons why RRIFs are great: Your money grows, tax-free How you invest the funds in your RRIF is totally up

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How To Fix RRSP Over-Contributions

A Registered Retirement Savings Plan (RRSP) is one of the best ways to save for retirement. It offers so many long- and short-term benefits. However, it’s important to understand exactly how much contribution room you have in any given year.

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What Is An RESP And How Does It Work?

Funding post-secondary education in Canada is becoming more and more costly. Long gone are the days when working a summer job paid for a year of school. If higher education is in your future, ideally you or your family invest in an RESP — and have been for a while.

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What Is The Lifelong Learning Plan?

RRSPs exist as a way to help Canadians save for the future. And as an added bonus, it shelters your income in a savings vehicle the government doesn’t touch until you’re ready to retire. However, what if you want penalty-free access to the money before then? The Lifelong Learning Plan is one way to safely unlock those funds.

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What Is A Spousal RRSP?

Are you one of the all-too-rare, but lucky, people with a solid pension waiting for you in retirement? For those of us who aren’t so lucky, it’s wise to start investing in RRSPs as soon as work-life begins.

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What Is My RRSP Contribution Limit?

Planning for retirement is a key aspect of any financial plan. One of the best ways to make sure you have enough money to retire on is to invest in a Registered Retirement Savings Plan (RRSP). Then, watch your nest egg grow. But it’s important to understand your RRSP contribution limit to maximize the benefit.

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What is The Home Buyers’ Plan?

Buying your first home is exciting if not an overwhelming, exercise. You save and visualize that dream home, then, you search and select your options. And with fingers crossed, you put in your offer.

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RRSP Withdrawal Rules: What To Know

Registered Retirement Savings Plans (RRSPs) help you save for your future. But many Canadians may want or even need, access to that pot of funds early. If that’s you, it’s important to understand RRSP withdrawal rules so you can make the best decision for your situation.

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