Registered Products
Registered Retirement Savings Plans (RRSPs)
An RRSP is a tax-deferred vehicle for retirement savings. RRSPs not only save you tax today, but they can also be used to make a down payment as a first-time homebuyer, or to finance your post-secondary education.
Any resident of Canada who has earned income and is less than 72 years of age may contribute to an RRSP within limits set out in the Income Tax Act. Contributions to an RRSP reduce your taxable income and are not taxed until you withdraw the funds. To determine your RRSP contribution limit for the current year, review your Notice of Assessment from the Canada Revenue Agency which you would have received after you filed your last year’s income tax return.
A spousal RRSP allows one spouse, typically the higher income earner, to make RRSP contributions on behalf of their spouse. For example, if you earn significantly more income than your spouse, you have more taxable income and fall in a higher tax bracket. You can then consider allocating future taxable income as evenly as possible between you and your spouse or common-law partner. This is commonly known as “income-splitting”.
There is a deadline for contributions to your RRSP for the previous tax year. Always double check on the Canada Revenue Agency (CRA) website to confirm the deadline date each year, so that you can count the contribution as a deduction against your previous year’s income. Once this date has passed, RRSP contributions are only deductible against your taxable income for the current (or any subsequent) year.
Contributions made before the contribution deadline can be deducted against either the previous year or the current year.
Term deposits or variable deposits can be held in an RRSP. You can make lump sum or pre-authorized regular contributions. Contact us today to discuss your investment needs.
Download the brochure here
Registered Retirement Income Funds (RRIFs)
Converting your RRSP or Registered Pension Plan to a RRIF provides you with a regular stream of income, spreading your RRIF income over several years to minimize income taxes. An RRSP must be converted to a retirement income option, such as a RRIF, no later than December 31st of the year in which you turn 71. A RRIF has a minimum annual withdrawal amount required each year based on the value of your RRIF and your age at the beginning of each year. Withdrawals made from your RRIF are considered taxable income in the year they are withdrawn. The investment amount that remains in your RRIF continues to grow tax-deferred until withdrawn. Term deposits or variable deposits can be held in a RRIF. Contact us today to discuss your investment needs.
Tax Free Savings Accounts (TFSAs)
A TFSA is a savings account which provides tax saving benefits for Canadian residents aged 18 and older. Investment income earned within a TFSA is not taxable, even when the funds are withdrawn. You can withdraw the funds from your TFSA to help pay for a vacation, buy a new car or do a home renovation.
The annual contribution limits from 2009 to 2025 are detailed in the chart below. Unused TFSA contribution room is carried forward and accumulates. The allowed contribution maximum as of 2025 for a Canadian resident aged 18 and older as of 2009 would be as shown below:
2009 to 2012 |
$5,000 annually |
2013 to 2014 |
$5,500 annually |
2015 |
$10,000 |
2016 to 2018 |
$5,500 annually |
2019 to 2022 |
$6,000 annually |
2023 |
$6,500 |
2024 to 2025 |
$7,000 |
Total |
$102,000 |
If funds are withdrawn from a TFSA, the contribution room is increased by the withdrawn amount in the calendar year after the withdrawal. This means that you will not lose your contribution room by withdrawing funds from your TFSA.
Term deposits or variable deposits can be held in an TFSA. You can make lump sum or pre-authorized regular contributions. Contact us today to discuss your investment needs.
Download the brochure here
Registered Education Savings Plans (RESPs)
A Registered Education Savings Plan (RESP) is a government-sponsored registered plan that helps you save for a child’s post-secondary education. Investment earnings grow tax-deferred within an RESP. The lifetime contribution limit per child (beneficiary) is $50,000, with no annual contribution limit.
The Canada Education Savings Grant (CESG) provides additional educational funding, with a lifetime maximum of $7,200 per beneficiary. The CESG matches a percentage of RESP contributions, based on annual limits and family income.
RESP accounts can remain open for up to 35 years — a key feature if the child does not pursue post-secondary studies immediately after high school.
To become a beneficiary of an RESP, each child must have a Social Insurance Number (SIN).
When RESP funds are withdrawn for educational purposes, the investment earnings and CESG amounts are taxed as income to the student, who is often in a lower tax bracket.
Overview of RESPs and Grants (Provided by CRA)
Term or variable deposits can be held in an RESP. You can make lump sum or pre-authorized regular contributions. Contact us today to discuss your investment needs.