19 things you probably don’t know about RRSPs

It’s 2019 so we have put together 19 things you might not know about RRSPs…

  1. They are not a product.
  2. Contributions made in the first 60 days of the year can be used on last year’s tax return (or this year’s for that matter)
  3. There is a penalty for contributing too much.
  4. You can get a tax return.
  5. If you invest your tax return back into your RRSP account, they are often even-Steven with the benefit of a TFSA.
  6. Your pension uses some of your RRSP contribution room.
  7. 24,555,750 people have unused contribution room (as of 2016 according Statistics Canada).
  8. Contribution room starts accruing when you start working as a teenager.
  9. You cannot re-contribute if you take the money out (unless it’s with the Home Buyer’s Plan).
  10. You can take up to $25k from your RRSP for a house purchase if you qualify as a first time home buyer.
  11. In regards to the Home Buyers Plan, a first time home buyer doesn’t actually have to be a first time buyer .. just a buyer who has not owned a home in the previous 4 years.
  12. You can put a savings account, mutual fund, segregated fund, GIC, REIT, stock, bond, ETF (among other assets) inside your RRSP account.
  13. RSP and RRSP are the same thing.
  14. RRSPs grow up to be RRIFs by the time you turn 71.
  15. You don’t have to be an adult to open a RRSP*.
  16. Theres no such thing as a joint RRSP account.
  17. They are not always the best option, sometimes a TFSA is a better choice for long term investing.
  18. Unused contribution rolls over year after year until you use it all up.
  19. If you say it quickly, you sound like a pirate “ arrrrr – espy”.

March 1st is the deadline for 2018 contributions. To talk to one of our advisors, please start by filling out our intake questionnaire (here)

*financial institutions may have age restrictions of their own

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