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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 2011 tax year is March 1st, 2012.
  • 2011 Contribution Limits
    • A maximum of $22,450, less any pension adjustment from the previous year.
    • 2011 contribution limit is $22,450.
  • 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.