Retirement Savings Plan (RRSP)

If you or your partner earn significantly more now, or expect to in the future, consider these features:

• Pay less income tax. The contributing partner defers taxes paid on their annual income tax.
• Consider income splitting. Your overall tax bill is reduced by keeping both spouses in a lower tax bracket during retirement.
• Defer taxes over 71. When you are 71+, you can no longer contribute to an RRSP, but if your spouse is 71 or younger, you can contribute to their Spousal RRSP and still claim a tax deduction.

How much can you contribute?

Your spousal RRSP contribution, when combined with your personal RRSP contribution, cannot exceed your personal RRSP deduction limit.

• If you are a Canadian taxpayer 71 years of age or younger, you can make annual contributions up to 18% of your earnings up to a limit set by the federal government.
• Find your personal RRSP contribution limit for the current year on your previous year’s Notice of Assessment.
• View your refunds, returns and limits online or on mobile using the Canada Revenue Agency (CRA) My Account.
• Call the CRA T.I.P.S. line at 1-800-267-6999 form mid-September through to the end of April. You’ll need your Social Insurance Number, date of birth and total income from line 150 to the previous year’s income tax return.

If you qualify as a first-time home buyer, you can use up to $60,000 from your RRSP to help pay for your new home as part of the federal government’s Home Buyers’ Plan (HBP). Your spouse or partner can do the same, which would give you a total of $120,000. You don’t have to pay tax on this withdrawal, but you do need to pay it back within 15 years. Find all the details about the HBP on the Government of Canada’s website.

This program allows you to withdraw up to $10,000 per calendar year from your RRSPs to help cover education costs for you or your spouse/common-law partner. The total withdrawal limit is $20,000. As long as you meet the Lifelong Learning Plan (LLP) conditions each year, you can continue withdrawing until January of the fourth calendar year after your first LLP withdrawal. More details about the LLP are available on the Government of Canada’s website.