FAQ RRSP

For the 2026 tax year, you can contribute 18% of your previous year's earned income, up to a maximum of $33,810, plus any unused room carried forward from earlier years. Your exact limit is shown on your latest Notice of Assessment or in CRA My Account.

Contributions made during the calendar year and in the first 60 days of the following year can be deducted on that year's tax return. For example, contributions made up to early March can usually be claimed on the previous year's return.

An RRSP gives you a tax deduction now, and withdrawals are taxed later, so it usually works best if your income is higher today than it will be in retirement. A TFSA gives no deduction, but growth and withdrawals are tax-free, so it suits lower incomes and flexible goals. Many people use both. We can help you decide.

A spousal RRSP is an RRSP that you contribute to and claim the tax deduction for, but that belongs to your spouse or common-law partner. It can help split income in retirement so the couple pays less tax overall. Contributions use your own RRSP room.

The Home Buyers' Plan (HBP) lets first-time home buyers withdraw up to $60,000 from their RRSP, tax-free, to buy or build a home. The money must be paid back to your RRSP over 15 years, normally starting the second year after the withdrawal (the fifth year for withdrawals made from 2022 to 2025). Any amount not repaid on schedule is added to your taxable income.

It depends how old you are when you retire. You must move your money out of your RRSP by December 31 of the year you turn 71. After that, you can convert your savings to another registered account like a registered retirement income fund (RRIF), purchase an annuity, or withdraw your funds. 

In general, when an RRSP owner dies, the RRSP is treated as if it was cashed out, and the value is included in income on the final tax return. If your spouse or common-law partner is the beneficiary, the RRSP can usually be rolled over to their RRSP or RRIF tax-deferred, so they pay tax only when they withdraw. The rollover does not use their own contribution room. Talk to a licensed Life Advice advisor, and a tax professional, to plan your beneficiary.

There is no way to transfer your RRSP account to someone else. You also can’t transfer money from your RRSP to someone else’s RRSP.

Your child will receive the full value of your RRSP funds. But the entire value of the RRSP will also be included as taxable income in the final tax return that will be filed when you die. Please note that generally, your estate is responsible for the associated tax liability. Speak to a lawyer or tax professional to better plan for your situation