Tax Bulletin - Answering Your RRSP Questions

February 13, 2020

RRSPs are an important component of an overall financial plan for most Canadians. As we struggle with high personal taxes and a fear that our government will not be able to provide adequate pensions for us in retirement, RRSPs offer a great opportunity to save taxes currently and provide for our retirement needs.

This bulletin explains the rules for RRSP contributions, the types of investments an RRSP can hold, and the ways in which RRSP withdrawals can be made. We have done this in a question and answer format, attempting
to anticipate the questions that you might have about your RRSP.

Note that the federal government, along with many provincial governments, have introduced legislation covering Pooled Registered Pension Plans or PRPPs. Despite the increase in the availability of such plans, it would appear that it will still take some time before PRPPs become commonly available and widely udes. Note that PRPPs operate in a manner similar to RRSPs and contributions to a PRPP will reduce available RRSP contribution room.

Although we have tried to deal with as many issues as possible, you may have a question which is not covered by the materials in this bulletin. Contact your BDO advisor for help with any RRSP concerns you may have.

Download our full tax bulletin