It’s 2019 so we have put together 19 things you might not know about RRSPs…
- They are not a product.
- 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)
- There is a penalty for contributing too much.
- You can get a tax return.
- If you invest your tax return back into your RRSP account, they are often even-Steven with the benefit of a TFSA.
- Your pension uses some of your RRSP contribution room.
- 24,555,750 people have unused contribution room (as of 2016 according Statistics Canada).
- Contribution room starts accruing when you start working as a teenager.
- You cannot re-contribute if you take the money out (unless it’s with the Home Buyer’s Plan).
- You can take up to $25k from your RRSP for a house purchase if you qualify as a first time home buyer.
- 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.
- You can put a savings account, mutual fund, segregated fund, GIC, REIT, stock, bond, ETF (among other assets) inside your RRSP account.
- RSP and RRSP are the same thing.
- RRSPs grow up to be RRIFs by the time you turn 71.
- You don’t have to be an adult to open a RRSP*.
- Theres no such thing as a joint RRSP account.
- They are not always the best option, sometimes a TFSA is a better choice for long term investing.
- Unused contribution rolls over year after year until you use it all up.
- 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