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What's an RRSP?

A Registered Retirement Savings Plan (RRSP) is a government approved plan through which you save money for your retirement years and any income or growth you earn is tax deferred until you withdraw money.

Contribution details.

  • Up to a maximum contribution limit allowed for the year
  • The amount you can contribute is 18% of your previous year's earned income less any pension adjustments, up to the maximum contribution limit allowed for the year
  • Contribution deadline – You must make your contribution within the first 60 days of the new year
  • The next deadline is March 3, 2025

Withdrawing money from an RRSP account.

When you withdraw funds from an RRSP, your financial institution withholds a portion of the taxes owed and forwards to CRA on your behalf. The rates depend on your residency and the amount you withdraw. For residents of Canada, the rates are:

  • 10% (5% in Quebec) on amounts up to $5,000;
  • 20% (10% in Quebec) on amounts over $5,000 up to including $15,000
  • 30% (15% in Quebec) on amounts over $15,000

The tax that was withheld may not always be enough to account for the tax you owe at your tax bracket. You may have to pay more tax on the withdrawal when you include the withdrawal on your income tax and benefit return for that year.

Additional information is available on the Canada Revenue Agency's website.

Important points to remember:

  • The money you put in is tax deductible, within limits, and
  • You don't pay taxes on the money you earn in an RRSP until you withdraw it

Talk to our Investment Team

RRSP FAQs

There are two main reasons:

  • You are eligible for a tax refund based on your contribution and the tax rate you pay. Getting your own money back might help you start on other goals like paying off debt or investing in a child's education.
  • Age is on your side, so the sooner you start, the better. You have many years to accumulate compound interest, and your earnings are tax sheltered so they will grow even faster than a non-RRSP investment.
As much or as little as you can afford. Some RRSPs have a minimum contribution of $1,000 which equates to about $20 a week. You could have $50 automatically deducted from your pay cheque and watch it build to $1,300 in a year. The sooner you start, the more time you'll have compound interest working for you.
Depending on what type of investments you hold your money is not always locked in, however, if you take it out, you will have to pay the tax on the portion withdrawn. There are some instances where you can take the money out tax free, up to $25,000 for first-time home buyers or $10,000 a year for people who want to continue their education, for example. Please speak to a financial representative for complete details.
There are numerous RRSP investment options. If you are not sure what is best for you and you do not have the time to explore your options with us today the Park-it RRSP is a flexible and easy-to-use option for a temporary solution. We will make sure we contact you to help find the right, longer term, product that is right for you. Find out more information on the Park-it and other products.
How much you will need to save for retirement is as unique as you are. If you’re ready to begin planning for your retirement, Coast Capital Savings can help. Contact us to talk to someone who can help you figure out what to do now in order to live the life you want later. They’ll tell you everything you need to know in simple, helpful language.
To open an RRSP with Coast Capital Savings, you'll need to set up an appointment to visit a nearby branch.
Yes. If you already have an RRSP contract at Coast Capital Savings, you can transfer funds from your chequing or savings account to make an RRSP contribution in Coast Online Banking.
No, but please contact us so we can help you with this request by phone.
No, but please contact us so we can help you with this request by phone.
No, but please contact us so we can help you with this request by phone.
No. Please visit a nearby Coast Capital Savings branch to withdraw money from your RRSP. We're sure you wanted to see our smiling faces in person anyway.
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Coast Capital Savings Federal Credit Union provides advice and service related to deposit, loan and mortgage products. Coast Capital Wealth Management Ltd. provides investment and financial planning services. Coast Capital Financial Management Ltd. provides advice and service related to segregated funds, annuities and life insurance products. Worldsource Financial Management Inc. provides advice and service relating to mutual funds. Mutual fund values change frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses may all be related with mutual fund investments. Important information about mutual funds is contained in the relevant fund facts and simplified prospectus. Please read the fund facts carefully before investing. Only deposits payable in Canada are eligible to be insured under the Canada Deposit Insurance Corporation Act.