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  • A RRSP is a retirement savings plan registered with the Canada Revenue Agency (CRA) which allows you to grow your retirement savings tax free while the funds stay in the RRSP.
  • A RRSP is designed for retirement savings purposes. A TFSA is designed to provide tax free savings for any purpose, including retirement.
  • Contributions to a RRSP are tax deductible whereas contributions to a TFSA are not deductible for tax purposes.
  • Withdrawals from a RRSP are taxable when withdrawn whereas withdrawals from a TFSA are not taxable.
  • Only individuals with contribution room (i.e. having earned income in Canada) can contribute to a RRSP. Anyone who is 18 years of age and a Canadian resident can contribute to a TFSA.
  • Contributions can be made to a RRSP only until the end of the year in which you turn 71 years of age. There is no maximum age limit to contribute to a TFSA.
  • Contribution limits are different for a RRSP than a TFSA. Maximum contributions to a RRSP depend on your income and other factors. Maximum contributions to a TFSA are a set annual amount which is the same for everyone
  • An individual with “earned income” in Canada, including non-residents, may contribute to an RRSP.
  • Contributions can be made until the end of the calendar year in which you turn 71 years of age.
  • See the “RRSP Deduction Limit Statement” included on the Notice of Assessment issued to you by Canada Revenue Agency to determine your RRSP contribution limit.
  • The annual contribution limit is the lesser of: 18% of income earned in the previous year or the maximum annual contribution limit prescribed by the Government of Canada. Contributions to your employer’s pension plan reduces the amount you can invest in your RRSP.
  • If you do not use all of your contribution room in previous years, you can carry over the unused portion to future years.
  • You cannot exceed your RRSP contribution limit otherwise penalties will apply.
  • You can contribute a large amount at one time, often referred to as a lump sum contribution, up to your maximum contribution limit.
  • You can contribute regularly scheduled amounts via automatic transfers from your chequing or savings account directly to your RRSP account.
  • If you have an existing RRSP at the Caisse, you can make contributions by logging into Online Banking and transferring money from your chequing or savings account to your RRSP account.
  • You can contribute to your own RRSP or to your legal or common law spouse’s RRSP (‘spousal RRSP’). Spousal RRSP contributions allow income splitting at retirement, resulting in a possible reduction of overall family taxes.
  • Anyone with “earned income” subject to Canadian taxation, including non-residents, may contribute to an RRSP anytime until the end of the year in which he or she turns 71 years of age.
  • 60 days following the end of the calendar year is the RRSP contribution deadline for reporting the deduction on your tax return.
  • The return on a RRSP depends on the type of investment that you selected.
  • If the RRSP is a savings account or a Guaranteed Investment Certificate (GIC), the return is paid in the form of interest. The interest is not taxable for as long as you leave the interest in the RRSP; the interest is taxable when you withdraw it.
  • If the RRSP is a mutual fund or other type of investment, you would need to confirm in what form the return will be received (ex. interest, dividends or other).
  • Interest is ‘compounded’ when you earn interest on your interest.
  • If the interest earned is left in your RRSP, the interest rate is applied to the original deposit as well as to the amount of interest earned, therefore you would be earning interest on interest.
  • Compound interest can make a big difference in the amount of return that you earn over time.
  • You can contribute to a RRSP via a savings account which is a flexible, simple way to save and there are no fees. Deposits can be made anytime into the account and you can transfer your funds to another RRSP investment option at any time.
  • You can contribute to  RRSP via a GIC which is a secure way to grow your savings as the interest rate is fixed.
  • You contribute to a RRSP via a mutual fund through our partner, Credential Asset Management, with varying degrees of risk and return according to your preferences.
  • Your retirement expenses determine the amount you need to save.
  • Click “Tool & Resources” above for retirement savings calculators.
  • Both a RRSP and a TFSA allow you to grow your savings tax free.
  • A RRSP is designed to give you tax savings by providing you with a tax deduction when you contribute to the RRSP, however you will pay taxes when you withdraw the funds from the RRSP.
  • A TFSA does not provide a tax deduction when you contribute however withdrawals from a TFSA are not taxable.
  • The benefits of contributing to a TFSA versus a RRSP will depend on your age and financial situation. It may be to your benefit to maximize your tax deduction with a RRSP or conversely to take full advantage of the TFSA contribution limit or to contribute to both a TFSA and a RRSP.
  • Speak with a Financial Services Advisor who can provide you with helpful advice before you make your decision.
  • You can contribute to a RRSP as soon as you have contribution room, which is when you have earned income in Canada. The earlier you start, the longer your savings can grow tax free and the less you will have to contribute from your own pocket to fund your retirement.
  • All contributions to a RRSP prior to the contribution deadline can be deducted in the tax year. You should try to maximize your tax savings by contributing as much as possible prior to the deadline. Every individual’s situation is different.
  • Contact a Financial Services Advisor about contributing to a RRSP.
  • You can withdraw from an RRSP before retirement however you will have to claim any funds withdrawn as income in the year of the withdrawal, except in the following circumstances:
    • You can withdraw funds from your RRSP without tax consequences to apply the funds towards the purchase of your home, (Homebuyers’ Plan).
    • You can withdraw funds from your RRSP without tax consequences to apply the funds towards the cost of your education (Lifelong Learning Plan).
    • Upon your death, if your spouse is the beneficiary of your RRSP, the funds can be transferred to your spouse’s RRSP, who, will not pay taxes on the funds until they are withdrawn from his/her RRSP.
  • You should consider the tax consequences before withdrawing from your RRSP as well as how the reduction of RRSP savings will impact your retirement goals.
  • Click “Open Account” above and complete the online form or contact any of our branch locations to open a RRSP.