RRSP – Registered Retirement Savings Plans


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Defer your taxes with regular contributions and benefit from the fact that it’s better to be taxed tomorrow than today.  Also benefit from arbitrage opportunities resulting from different tax brackets between now and retirement, as well as those between you and your spouse.  Together, we can design an RRSP portfolio suitable to your financial goals.

The best income tax deduction for Canadian Small Businesses.


Annual Contributions

You can contribute anytime during the year or up to 60 days into the following year. You may contribute to your RRSP until December 31 of the year in which you reach age 71.   The maximum RRSP contribution limit each year is stated below however, if you did not use all of your RRSP contribution limit for the years 1991-2010, you can carry forward the unused amount to future years. Therefore, your RRSP contribution limit for 2012 may be more than $22,970.The maximum RRSP contribution limit for subsequent years is as follows:

  • 2011 maximum RRSP contribution limit: $22,450
  • 2012 maximum RRSP contribution limit: $22,970
  • 2013 maximum RRSP contribution limit: $23,500 plus inflation index amount
  • 2014 maximum RRSP contribution limit: Indexed to inflation
  • 2015 maximum RRSP contribution limit: Indexed to inflation


Your allowable RRSP contribution for the current year is the lower of:

  • 18% of your earned income from the previous year, or
  • The maximum annual contribution limit for the taxation year (as per above), or
  • The remaining limit after any company sponsored pension plan contributions.

Earned income includes salary or wages, alimony received, and rental income, among other income sources, but does not include items such as investment income.

You’ll find the exact amount you can contribute to your RRSP for the current year on the Notice of Assessment you receive from Canada Revenue Agency after they process your previous year’s tax return.


Company Pension Plan or Deferred Profit Sharing Plan

As a member of a company-sponsored registered pension plan or deferred profit sharing plan, the amount that you can contribute to your RRSP must be reduced by the total value of the pension credits you earned for the year.

This amount is referred to as a pension adjustment (PA) and it is reported on the T4 slip (Statement of Remuneration Paid) that you receive from your employer.

Types of RRSPs

  • Individual RRSP  – With an Individual RRSP, the investments held in the plan and the tax benefits derived from it are the contributor’s.
  • Spousal RRSP – In a spousal RRSP, the plan is registered in the name of the spouse of the person contributing to the plan.
  • Group RRSPs – A Group RRSP is a collection of individual RRSPs offered to employees by their sponsoring employer.
  • Self-directed Plans – If you are the type of investor that enjoys managing all or a portion of your own portfolio, a self-managed RRSP may be the answer.


Uses for your RRSP

  • Retirement Funds – For you and your spouse
  • Home Buyer’s Plan – The Home Buyer’s Plan allows you to borrow funds from your RRSP to purchase your first home
  • Lifelong Learning Plan – The Lifelong Learning Plan allows you to pay for training or education with RRSP funds
  • Emergencies – Your RRSP holdings can be used to cover an emergency situation.

Non-Registered Investment vs RRSP (Tax Deferred Growth)NonRegisteredVsRegisteredInvestmentComparison

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Buying your home with your RRSP.


CWF Group lends clarity to these questions and so many more.  To find out more click here to speak with one of our specialist.