RRSP Quick Facts

• Age Limits

  • You can contribute until December 31st of the year you turn 71.

  • Contributions to a spousal RRSP can be made until December 31st of the year the spouse turns 71, even if the contributor is over 71.

  • Children under 18 can contribute to an RRSP, but are not allowed the $2,000 over contribution limit.

  • Earned income is a requirement in all the above cases in order to receive RRSP contribution credits.

• Carry Forwards

  • Beginning with 1991 contribution limits, you can carry forward unused deductions indefinitely.
     
  • The unused limit is tracked for you by revenue Canada and is shown on your Notice of Assessment each year after you file your tax return.

• Contributions Deadline

  • Deadline for 2013 tax year is March 1st, 2015.

• 2014 Contribution Limits

  • A maximum of $24,270, less any pension adjustment from the previous year.

• Spousal RRSP plans

  • Make contributions to a spousal plan to achieve income splitting on the withdrawals upon retirement.

• RRSP Loans

  • Standard: an RRSP loan is paid off over a 1-year period. Payments can start right away, or can be deferred for 3 to 6 months. Interested rates are at prime.

  • Catch-up Loans: an RRSP loan can be paid up to 10 years. Interest rates are usually at prime, or prime + 1%

• Optional RRSP Usage

  • RRSPs can be used to buy a home or to go back to school as part of the life long learning program.

  • First time home buyer plans are also available in order to help purchase a home.