Questions tagged [rrsp]

To be used for questions related to RRSP [Registered Retirement Savings Plan] as applicable in Canada. This is an older program, the newer one being TFSA [Tax Free Savings Account Program]

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Reduce income tax payable in Canada for an individual taxpayer

For the 2023 tax year, in Canada, how can I reduce my personal taxable income/taxes payable on my T1 tax return? I know I can use my RRSP and a spousal RRSP as a deduction against taxable income up to ...
user122866's user avatar
1 vote
1 answer
40 views

Instalment interest calculation in Canada for individuals

I made no instalments payments in 2023 as I thought my net tax owing in 2023 would be below $3000. I received instalment reminders from CRA and I ignored the emails. Now, I believe my net tax will be $...
user122866's user avatar
1 vote
1 answer
86 views

New US tax resident 2022 - from Canada. RRSP/bank-accounts/income questions

I moved from Canada to USA on May 30 2022 and work here as a full-time W2 employee. That makes me a US tax resident (alien) for 2022. Here's my detailed situation: I earned a salary until May 26 2022 ...
urover's user avatar
  • 111
2 votes
1 answer
190 views

Are employer contributions to RRSP part of one's own contributions in tax forms?

Context: working for a company in Quebec (Canada) that matches RRSP contributions. When contributing to one's RRSP, the company contributes an additional amount on top (a percentage of the employee ...
Joan Rieu's user avatar
  • 131
3 votes
1 answer
74 views

Canadian FHSA to RRSP after 15 years

I am a Canadian Resident Tax Payer. I regularly max out on my RRSP contribution room. I never owned a home, I have been renting because I move around a lot because of work (Canada & USA). I am ...
CostOfLivingChallenged's user avatar
1 vote
1 answer
100 views

What account to draw from for a first-time home buyer? (Canada)

Assuming I need 35K for a downpayment and I have 50K in an RRSP 50k in a TFSA and 20k in a non-registered account— which account is it best to draw from? My assumption is that cleaning out the non-...
Dugan 's user avatar
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7 votes
1 answer
3k views

Can I pay my partner’s income tax (Canada)

I net approx. twice what my spouse does. At income tax time can I pay her income tax for her so she has more money to invest in her retirement savings account (RRSP)? I know that if I were to give her ...
Dugan 's user avatar
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3 votes
1 answer
117 views

Is the RRSP Contribution period 12 months or 14 months?

Assuming a clean slate (i.e. no carry-forward contribution room) I always thought the one could make their RRSP contribution any time within the calendar year + 60 days after the end of the year. If ...
skube's user avatar
  • 312
2 votes
2 answers
216 views

What will happen to the amount of money I contributed exceeding my RRSP limit and will I pay a penalty?

My RRSP deduction limit for 2020 was 16,000$. In the year 2020, I contributed 28,000$. TurboTax displays it as "Amount of contributions exceeding your limit (automatically carried forward for you)...
Deter43950's user avatar
1 vote
1 answer
527 views

RRSP contributions in first 60 days of calendar year

RRSP contributions made in the first 60 days of the current calendar 2021, can be claimed in the prior year 2020, or later tax returns. Regarding RRSP contribution limits. If the contribution is made ...
Bob's user avatar
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5 votes
0 answers
91 views

I'm a Canadian citizen and now a US resident. How do I close my Canadian RRSP and TFSA?

I am a Canadian citizen who moved to the US in 2009. I am now a US resident and Canadian non-resident. I still have a Canadian RRSP, TFSA, and bank account. I've filed FBARs since becoming a US ...
Canuck's user avatar
  • 51
0 votes
1 answer
65 views

Excess contribution to RRSP

Consider a hypothetical case of a Canadian tax resident living in Ontario and making CAD 100K each year. Suppose they contribute CAD 50K in 2020 to an RRSP. CAD 27230 is the contribution limit for ...
user2371765's user avatar
  • 1,084
2 votes
0 answers
33 views

Can I hold US dollars and buy US stocks (with US Dollars) without FX commissions using a Canadian brokerage account?

May be moving to Canada next month, so I had some questions. I would like to transfer my US dollars to a Canadian brokerage account -- from what I've read IB or Questrade are the best options. However,...
StatsScared's user avatar
2 votes
1 answer
35 views

Do I need to account for this year's RPP contributions when contributing to RRSP

I'm starting contributions to both a defined contribution RPP with employer matching and an RRSP account. I know my RRSP contribution room from last year's notice of assessment. What I can't find an ...
Bouzid Zitouni's user avatar
1 vote
0 answers
48 views

Opening an RESP for myself

I am located in Canada. I was wondering if instead of contributing directly into an RRSP, why people don't instead open up an RESP for themselves, contribute as much as they can afford (up to 50k) and ...
Mohammad Ali's user avatar
3 votes
1 answer
218 views

When calculating net-worth, how to discount money in an RRSP?

Suppose that I have the following account balances: Personal Banking Account $10,000 TFSA $40,000 RRSP $60,000 I would like to calculate my net-worth. ...
sixtyfootersdude's user avatar
1 vote
0 answers
34 views

How to move my Canadian stocks into RRSP

I have various stocks I hold for the dividends (and most are DRIPs). They are NOT in any tax-advantaged accounts. Is there an easy way to move them into, say, an RRSP? Or would I be required to sell ...
Canadian Luke's user avatar
2 votes
1 answer
2k views

When would holding U.S. stocks in a non-registered account be better than in a TFSA?

Assume your RRSP is full, and you must buy U.S. stock in TFSA or in an unregistered [aka non-registered] account. The default answer seems to be TFSA! If you have an RRSP, a TFSA and a non-...
user avatar
3 votes
1 answer
346 views

How to buy private company stock using a registered account (e.g. LIRA, RRSP)?

I would like to invest is a private company using money from my LIRA (locked in retirement account). I know this is allowed, similar to holding private mortgages under these accounts, but how do I ...
Matt's user avatar
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0 votes
0 answers
34 views

Do employers receive any financial benefit from offering a RRSP/401K matching program? [duplicate]

I understand that companies that offer RRSP matching programs may be more attractive to work for/have better employee retention, and the employers may get warm fuzzies from offering it to their ...
Dugan 's user avatar
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-1 votes
1 answer
65 views

When ought your taxable income < min{Ontario, Federal Basic Personal Allowance}?

Assume I have no tax deductions except RRSP, and I have $90K in my RRSP that I never deducted. Let "BPA" mean "Basic Personal Amount". Optimal taxable income ≥ min{2020 Ontario BPA ($10,783), Federal ...
user avatar
1 vote
1 answer
64 views

I maxed TFSA. Can't your after-tax income be higher without RRSP?

I already maxed my TFSA. I can't have and don't want kids. I live in ON. Service Canada website shows that if I start CPP at 70, I get $700/month. I think I got just two options — RRSP (contribution ...
user avatar
0 votes
1 answer
61 views

What other variables affect optimal contributions to RRSP now?

I already maxed my TFSA. I can't have and don't want kids. I want to create an Excel spread-sheet to work backwards to determine the optimal RRSP contributions now that'll minimize taxes when I start ...
user avatar
18 votes
2 answers
13k views

If you're loaning yourself a mortgage, why must you pay interest? At the bank's posted rate?

I'm addled. You're withdrawing money from your own Registered Retirement Savings Plan(RRSP), and you must repay it. You're not using the approved lender's money at all! So why must you pay interest ...
user avatar
0 votes
2 answers
87 views

What's the "tax refund on RRSP contribution"?

Dan Brtolotti CFP CIM B.A. English University of Waterloo - St. Jerome's University wrote this article. I don't fathom third row. RRSP is taxed at withdrawal. Thus how is tax refunded when you deposit ...
user avatar
3 votes
0 answers
88 views

What's wrong with transferring $12,000 from RRSP to RRIF and withdraw $2000/yr 65-71 inclusive? Why doesn't this give you $12000 out RRSP tax-free?

I live in ON. Jim Yih wrote Are You Taking Advantage of the Pension Income Tax Credit? Transfer RRSP to a RRIF. At age 65 transfer $12,000 to a RRIF and take $2000 out per year from age 65 to 71(...
user avatar
16 votes
4 answers
11k views

Minimize taxes now that I earn more

Background I recently received a hefty promotion for $350k (plus stocks and bonuses) with the same company. Now that I can finally start to pay down my debt, I'm not so happy that suddenly 45% of my ...
Tonio's user avatar
  • 201
3 votes
1 answer
171 views

Why does strategy with borrowing 35,000 and using Home Buyer's Plan apply to just Canadians in 40% marginal tax bracket?

Why do these Reddit users focus on the "40% marginal tax bracket"? How did they calculate it? Assume that we're in Ontario so that we can work with Ontario's provincial tax rates. 35K at 5% for 90 ...
user avatar
0 votes
1 answer
294 views

In one year, what's the maximum I can contribute to RRSP, from past unused contribution room?

My dad is 63 and lives in Ontario.. He maxed out his TFSA. His annual pre-tax income is $50K. Here is a screen-shot of his CRA online account: He never opened a RRSP, thus the $100K must've been ...
user avatar
1 vote
1 answer
583 views

How do Ontarians calculate optimal RRSP contribution?

Pls see my dad in Ontario's facts. He maxed out his TFSA, and his annual pre-tax income (henceforward "APTI") is $50K. CRA website shows his 2019 RRSP deduction limit is $100K. If I ...
user avatar
3 votes
0 answers
212 views

Should a Canadian working in the USA, invest in a 401k, Roth IRA, Traditional IRA, and/or RRSP?

I have a cousin who is a Canadian citizen working in the USA, asking me about the Canadian RRSP. However being an American I am more familiar with 401k, Roth IRA, and Traditional IRA. 1) From ...
akyeung's user avatar
  • 153
1 vote
1 answer
68 views

Can I withdraw Small Overcontribution from RRSP?

My contribution room for my RRSP is 23.5k, I accidentally contributed 25k though. I realize my over-contribution is within the 2k that CRA allows, but I would prefer to keep the extra $1,500 outside ...
Belgin Fish's user avatar
7 votes
1 answer
392 views

Ought a 63-year old working hotel employee commence an RRSP?

If I understood Global News, MoneySense, the Wealthy Barber, and Reddit, my dad ought NOT start or contribute to an RRSP! Right? Thanks. Facts He's 63 years old, and has no children under 18. He ...
user avatar
2 votes
0 answers
62 views

How can I notify the CRA of intent to contribute to an RRSP?

I currently have an RRSP through work that I contribute to. However, the amount is significantly smaller than my annual limit. I have a self-managed RRSP separately and contribute sizable amounts. ...
Mansfield's user avatar
  • 121
1 vote
0 answers
34 views

Optimal allocation to different employer plans to reduce tax bill in current year

I am a canadian citizen that work for a canadian employer and this is how my allocation to the various employer provided plans look. I read that I am required to pay taxes on the EPSP. Can someone ...
Victor123's user avatar
  • 16k
2 votes
1 answer
145 views

Paying for Spouse's Education with Savings vs Line of Credit vs RRSP (LLP)

My partner is currently going to school with no income, and I have been working for a number of years with a reasonable income (enough for savings, RRSP (Registered Retirement Savings Plan) , trips ...
Ian's user avatar
  • 143
2 votes
1 answer
113 views

Canada: Borrow to Invest in RRSP?

I've a credit line that charges a 2% fee to borrow money and no interest charges for 8 months. I've used this facility before for high value purchases and have not occurred any hidden fees / payments ...
Viv's user avatar
  • 329
1 vote
0 answers
42 views

Tax sheltered investment vehicles for retirement in Canada

Is there any investment vehicles to tax shelter income for retirement on top of RRSP & Pension? I know about LIRA. When you switch job you usually get your pension funds transferred into LIRA. ...
Connect The Dots's user avatar
2 votes
0 answers
44 views

Relationship between RRSP and Pension plan in Canada

What is relationship between RRSP and Pension? I know that contribution to Pension Plan reduces your contribution limit to RRSP but is it only certain kind of Pension Plan or all? Does it matter if it ...
Connect The Dots's user avatar
4 votes
2 answers
177 views

To lease or buy when I have the cash in my RSP

I am retired, collecting a pension, CPP & OAS. I also have money in my RSP, which becomes taxable when I withdraw it. I purchased, for cash & a trade-in, a 2014 BMW SUV. Sale price was $39000. ...
C Cooke's user avatar
  • 41
3 votes
2 answers
4k views

Can I withdraw from an RRSP for home renovation using the Home Buyer's Plan?

I have withdrawn $15,000 using Canada Home Buyer's Plan from my spouse's RRSP account in the year 2016. The withdrawal was only from spouse's RRSP account, not my account. Now we are planning to do a ...
corning's user avatar
  • 187
5 votes
1 answer
252 views

Should I open an RRSP if I don't plan to retire in Canada?

I'm currently working in Canada and my employer offers a program where they match my RRSP contributions up to a certain percentage of my salary. Should I start contributing to RRSP even though I ...
JonathanReez's user avatar
  • 5,842
3 votes
2 answers
164 views

Cashed RRSP For Startup Venture

I cashed out my RRSP to fund a startup venture. The RRSP value was significant, $100k. It now appears that the startup venture may not proceed. Can I put the money back into an RRSP with minimal ...
Dag77's user avatar
  • 31
2 votes
1 answer
329 views

Asset Allocation between TFSA vs RRSP

I have 60K in my TFSA and 15K in my RRSP. Both accounts are maxed out. I want to go with the basic balanced couch potato portfolio: XAW: 40%, VCN: 20%, ZAG: 40%. I've heard that putting stocks in ...
John Doe's user avatar
  • 121
3 votes
1 answer
251 views

Can employee share ownership plan (ESOP) contributions to an RRSP account qualify as HBP repayment?

Can employee share ownership plan (ESOP) contributions to an RRSP account be designated as repayment towards a previous withdrawal made under the Home Buyers' Plan?
Ramanan Krish's user avatar
2 votes
1 answer
1k views

Contribute to RRSP without deducting - how long can the deduction claim be deferred?

This question establishes that one can contribute to their RRSP without deducting for the year of the contribution. Additionally, this link from CRA's site has the question "What RRSP, PRPP, or SPP ...
Index Hacker's user avatar
2 votes
1 answer
170 views

Canadian RRSPs Transfer

Can I move my Canadian RRSP savings to the UK without incurring heavy taxation? If so, how can this be done? Thank you. (been going round in circles on the internet with this question).
John Chuffie's user avatar
5 votes
4 answers
609 views

Is there any reason to choose my bank's index fund over Vanguard?

I'm planning on transferring some of the money in my RRSP into an index fund. My bank (CIBC), has a balanced index fund that has 1.2% management expense ratio (https://www.cibc.com/en/personal-banking/...
Dugan 's user avatar
  • 2,582
3 votes
1 answer
845 views

Does it ever make sense not to join DC pension?

Background I have always contributed the maximum possible amount to my RRSP (and TFSA for that matter). My portfolio is comprised of a diverse mix of low-cost ETFs in a self-directed account. In my ...
Chris Baxter's user avatar
1 vote
2 answers
148 views

Deciding on RRSP carryover amount

I'm trying to do a last minute lump-sum RRSP contribution. I have an idea of how much I'd like to contribute/carry forward, but this is my first time making a significant RRSP contribution, so I'd ...
Matt K's user avatar
  • 121