What is an RRSP?

A Registered Retirement Savings Plan is a tax-advantaged account to help Canadians save for retirement. Contributions reduce taxable income for the year they are made and investments grow tax-deferred until withdrawal.

Contribution Details

2026 Contribution Limits

  • Annual Maximum: $33,810
  • Income Percentage: 18% of prior-year earned income
  • Carry-Forward: Unused contribution room can be carried forward indefinitely

Key RRSP Dates

Contribution deadline

  • For the 2025 tax year, the RRSP contribution deadline is March 2, 2026. In general, prior-year contributions are accepted within the first 60 days of the calendar year.
  • RRSPs must be converted to a retirement income product by the end of the year you turn 71.

Tax filing notes

  • CRA filing and payment deadlines vary by situation. Self-employed individuals may have a later filing deadline, but any balance owing is generally still due by April 30.
  • Claim eligible RRSP contributions on the tax year you choose, within allowed deadlines.

Investment Options & Special Programs

Investment options

  • Stocks and ETFs
  • Mutual funds
  • Bonds and GICs
  • Cash and money-market holdings

Special programs

  • Home Buyers' Plan (see details below and see also FHSA)
  • Lifelong Learning Plan for eligible education withdrawals under CRA rules
  • Spousal RRSP contributions
  • Conversion to RRIF or purchase of an annuity at age 71

Home Buyers' Plan

  • Maximum withdrawal: $60,000 per individual, up to $120,000 for a couple when both qualify
  • Withdrawals are repayable to your RRSP under CRA rules. Repayment schedules and conditions apply.
  • Check the CRA for current eligibility and repayment details before using the program for a home purchase.

Withdrawal Rules

Withholding tax rates

  • Up to $5,000: 10% outside Quebec, 5% in Quebec
  • $5,001 to $15,000: 20% outside Quebec, 10% in Quebec
  • Over $15,000: 30% outside Quebec, 15% in Quebec

Withholding tax is applied when you withdraw. For Quebec residents, separate provincial withholding can also apply. Your final tax bill depends on total taxable income for the year.

Maximizing Your RRSP

Practical steps

  • Automate contributions to smooth your savings and capture dollar cost averaging benefits.
  • Consider using a timed RRSP contribution to match your expected marginal tax rate for the year.
  • Reinvest any tax refund back into registered or non-registered accounts to boost savings.
  • Evaluate spousal RRSPs to balance retirement income between partners for tax planning.

At and after age 71

  • Convert your RRSP to a RRIF or other permitted retirement income product by the end of the year you turn 71.
  • Consider income sequencing and tax-efficient withdrawal strategies to manage taxable income in retirement.

Not sure how much RRSP room you should use this year?

If you're weighing the tax deduction against liquidity, TFSA room, or other priorities, we can help you decide how much RRSP contribution still makes sense. The right answer usually comes from your numbers, not a rule of thumb.

Schedule a Consultation

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