Maximizing your RRSPs effectiveness is considered to be one of the most powerful year-end tax planning techniques.

Registered Retirement Savings Plans (RRSPs) – Here is what you need to know in few words.

– The more you contribute to your RRSP the less taxes you pay (as long as you stay within your RRSP deduction limit)

– If you don’t have the money set aside for RRSPs; please call me, we will tailor a customized solution for you.

Please feel free to call us at 416.454.8812 or visit us at for a more personalized advice. Of course every individual’s tax situation is different and what works for one person does not necessarily work for everyone’s situation.

Registered Retirement Savings Plans (RRSP) – Tips and frequently asked questions.

What is RRSP ?

RRSP is a government approved program designed to encourage you to save for retirement by providing powerful tax reduction options.

This tax break comes in two forms:

1- The money you contribute into your RRSP is deductible from your taxable income, which will result in Immediate Tax Savings.

2- All interest or capital gains which you earn in your RRSP are tax free. (until you start withdrawing them)

How long can I keep my RRSP limit?

Any unused part of your RRSP deduction limit can be carried forward indefinitely.

If I can’t afford to put money in now, does the limit keep growing ?

If you can’t afford to put money in your RRSP this year, the RRSP deduction limit amount is carried forward to the next year and added to the deduction limit for next year.

What’s my RRSP deduction limit? How can I find my RRSP deduction limit for this year?

Your RRSP deduction limit is shown on your (NOA) Notice of Assessment for the previous tax year. You can also see it online using “My Account” service
at   or call the CRA at 1800.959.8281

Can I deduct interest and fees for my RRSP?

No. You cannot deduct any interest paid on funds you borrowed to contribute to your RRSP.
You cannot deduct fees charged directly to you by the plan administrator of your RRSP

I have lost money in my RRSPs that are mutual funds. Can I claim these losses on my return?

No, you cannot deduct mutual fund losses within RRSPs.

I have few RRSP plans at different banks. Can I combine them into one plan at one bank?

Yes you can – contact the financial institution you want to transfer the RRSP funds to. They will contact the other financial institutions to do a direct transfer of the funds.