Basic Info
What is the maximum money you can add to saving account?
18% Income
You deposit $1,000 into your RRSP. How much money do you have in your RRSP now?
$1,000
How does the spousal RRSP impact the contribution room of the contributing spouse?
When the spouse contributes to a spousal RRSP, this reduces their RRSP contribution room.
When was the RRSP created
The RRSP was created in 1957 to help Canadians to save for retirement.
When can a person open a RRSP
18-71 years old
You deposit $2,500 into your RRSP. Later, you withdraw $500. How much money is left in your RRSP?
$2,000
How big of an income difference does a couple need to have to make a spousal RRSP make sense?
There is no tried-and-true “one number fits all” rule. But, generally speaking, contributing to your spouse’s RRSP may make sense if you and your spouse are in different tax brackets.
What is the RRSP's deadline for contribution?
March 3 2025.
Is RRSP exclusively used to store money?
No, RRSP can contain investments, bonds and real-estate
You start with $5,000 in your RRSP. You deposit $1,200 and then withdraw $700. What is the new balance?
$5,500
Does contributing to your spouse’s RRSP make sense even if you have not maxed out your own RRSP?
The contributing spouse would need contribution room to use the spousal RRSP, so you couldn’t make a spousal contribution if you had maxed out your own contribution room.
What is the optimal time to withdraw the asset from a RRSP?
When you have little to no amount of income.
What happens when the annuitant contributes over the contribution limit
If the person were to over-contribute there would not be penalties until the amount is over $2,000, but the $2,000 would not be tax deductible . If the contribution is over $2,000 then a 1% penalty tax is given until the its no longer above the limit.
You have $10,000 in your RRSP. You deposit $2,000 and then make two withdrawals: $1,500 and $800. What is your RRSP balance after these transactions?
$9,700
If a spouse uses their RRSP to withdraw during retirement and then also withdraws from their spousal RRSP, whose contribution space does it come out of?
When the person in whose name the spousal RRSP is registered makes withdrawals, those would be under their name and be included in their taxable income. This would also be true for their own RRSP withdrawals. However, if you are withdrawing contributions made this year or two years prior, those withdrawals will count against the contributing spouse’s taxable income.
When should you stop investing in RRSP?
At the age of 71.
What happens to the RRSP when the annuitant dies?
You have $15,000 in your RRSP. You deposit $3,000, then withdraw $2,000. If your RRSP grows by 5% after these transactions, what is the final amount in your RRSP?
$16,800
Is income splitting the same as a spousal RRSP?
Income splitting is a financial planning strategy for reducing a couple’s overall household taxation in retirement. A spousal RRSP is just one tool that can be used to achieve this.
What does RRSP stand for
Registered Retirement Savings Plan.