What is a Registered Retirement Savings Plan or Registered Retirement Income Fund?

The Registered Retirement Savings Plan (RRSP) serves as a powerful tool to secure your retirement, harnessing tax-deferred compounding to maximize the growth of your investment earnings over time, while offering immediate tax relief through deductible contributions that can lower your current tax burden. It also provides flexible options like the Home Buyers’ Plan (HBP). The year in which you turn age 71 the RRSP must be moved into a Registered Retirement Income Fund (RRIF) drawing at least a minimum amount of taxable income annually from age 72 and on. At CG Wealth Management, we support this journey with expertly managed portfolios to help you Plan to Prosper.

  • The RRSP contribution limit for 2025 is 18% of your earned income from the previous year, up to a maximum of $31,560, plus any unused room from prior years, as set by the Canada Revenue Agency (CRA). Your unused room can be found on your Notice of Assessment or your CRA Online Account.

  • Yes, you can withdraw from your RRSP before retirement using options like the Home Buyers’ Plan (up to $35,000 tax-free for a first home) or any amount that will be treated as income at your marginal tax rate, and subject to withholding tax up front.

    Current Withhold Rates:

    • 10% (5% for Quebec) on amounts up to $5,000

    • 20% (10% for Quebec) on amounts between $5,001-$15,000

    • 30% (15% for Quebec) on amounts over $15,001

  • Once your RRSP is converted to a RRIF there is a minimum redemption required as a percentage set by the CRA on an annual basis. You can click here to find this table.

  • The Home Buyer’s Plan allows you to withdraw up to $35,000 tax-free to purchase your first home. You must repay the amount you withdraw from your RRSP over the course of 15 years.

FAQs