Registered Retirement Savings Plan (RRSP)

What is an RRSP?

It is a registered investment account for retirement savings purposes. This investment account enjoys tax-deferral privileges on its investment earnings. This means your earnings are maximized because more money stays in your account.

Why RRSP is for you…

  1. You can use RRSP for retirement while using TFSA for anything
  2. RRSP contributions are tax deductible
  3. Earnings are taxed only when withdrawn
  4. You can use your RRSP for your education (1) or buying your first home (2) subject to conditions.
  5. Unused contribution rooms can be carried forward


Any individual who has earned income and files their income tax return in Canada can contribute to an RRSP until December 31 of the year they turn 71.

A RRSP can hold a variety of investment options: Guaranteed Investment Certificates (GICs), mutual funds, stocks, and bonds to name a few. Flip My Life can help you decide which investments will best serve your needs.

There are contribution limits every year on RRSPs. To find out the exact amount you can contribute for the current year, check the most recent Notice of Assessment (NOA) you received from CRA when you file your taxes.
As a guideline, your allowable RRSP contribution for the current year is the lower of:

  • 18% of your earned income from the previous year
  • The maximum annual contribution limit for the tax year
  • The remaining limit after any company sponsored pension plan contributions

Yes, you can use your RRSP funds to cover an emergency situation. However, any withdrawal is considered taxable income for the year and a withholding tax will be deducted upfront when you withdraw the funds.

Legal Disclaimer

1. Under the Lifelong Learning Plan, you can withdraw up to $10,000 per calendar year for your own or your spouse’s full–time training or post–secondary education. The total amount that can be withdrawn is $20,000 each with withdrawals over a maximum of four consecutive years. At least 10% of the amount borrowed must be repaid each year, over a maximum period of 10 years.

2. You can withdraw up to $35,000 from your RRSP to buy your first home under the Home Buyers’ Plan. The funds must have been on deposit at least 90 days before you withdrew them, and a signed agreement to buy or build a qualifying home is required. At least 1/15 of the funds must be repaid each year, beginning two years after the funds were withdrawn. For more details see Canada Revenue Agency Home Buyers’ Plan.

Mutual Funds are sold by Flip My Life Inc. There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Please contact a financial advisor and read the Fund Facts before investing. Mutual fund securities are not insured by the Canada Deposit Insurance Corporation. For funds other than money market funds, unit values change frequently. Past performance does not determine future performance.

Flip My Life Inc. is licensed as a financial planning firm in the province of Ontario.

Financial planning services and investment advice are provided by Flip My Life Inc.

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