RRSP

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.

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: According to Statistics Canada, active membership in registered pension plans in Canada surpassed6.4million in2018. There are two main types of employer pension plans: defined benefit plans and defined contribution plans. 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

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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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First Time Home Buyer RRSP

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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