Weekly Tax Tips
How many RRSPs can I have?
2 Jul 2009
There is no limit on the number of RRSPs you can have. The limits are on the total amount you can deduct. However, most people find it simpler to have only one or two plans, making it easier to keep track of their RRSP investments.
If you are investing in assets which are insured by the Canada Deposit Insurance Corporation (CDIC), it may make sense to have more than one RRSP with different RRSP issuers. The CDIC only insures up to a specified limit of assets with each member financial institution. Therefore, by having RRSPs with more than one institution, you can increase the amount of your investments that are covered by the CDIC. Assets covered usually include bank or trust company deposits and GICs, but not mutual funds.
For more information on RRSPs, click here to read our bulletin Answering Your RRSP Questions.
This tax tip is a publication of BDO Dunwoody LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 2 Jul 2009.
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