Investments / RRSP
RRSP: Lower Your Taxes Today and Build Your Retirement
A Registered Retirement Savings Plan lets you deduct what you contribute from your income and grow your savings tax-deferred until retirement. We help you decide how much to put in, where to invest it and when to take it out.
Every dollar you put into an RRSP can lower the income tax you pay this year. Your money then grows without yearly tax on interest, dividends or gains, and you pay tax only when you take it out, usually in retirement when your income and tax rate are lower.
RRSP at a glance (2026)
- $33,8102026 contribution limit, or 18% of last year’s earned income if that is lower
- 18%of your previous year’s earned income adds new room each year
- March 1, 2027Deadline for contributions you can deduct on your 2026 return
- Age 71Convert to a RRIF or annuity by December 31 of the year you turn 71
- $60,000Home Buyers’ Plan withdrawal limit for a first home
- Carry forwardUnused contribution room never expires
Figures for the 2026 tax year. Your personal limit is shown on your latest CRA Notice of Assessment and in CRA My Account.
How an RRSP works
Contribute
Add money any time during the year, as a lump sum or with automatic monthly deposits.
Deduct
Claim your contributions on your tax return. At a 30% tax rate, a $10,000 contribution can save about $3,000 in tax.
Grow
Investments inside the plan grow without yearly tax, so your returns compound faster.
Withdraw
In retirement, convert to a RRIF or annuity and pay tax on the income as you receive it, often at a lower rate.
Smart RRSP strategies
Spousal RRSP
The higher earner contributes to a plan in the spouse’s name, so retirement income is shared more evenly and taxed less overall.
Home Buyers’ Plan
First-time buyers can withdraw up to $60,000 tax-free toward a home and repay it over 15 years.
Learn more →Lifelong Learning Plan
Withdraw up to $10,000 a year, to a total of $20,000, for full-time education for you or your spouse.
Catch up on unused room
Missed a few years? A larger contribution in a high-income year can bring a bigger refund.
Put your refund to work
Investing your tax refund in a TFSA or back into your RRSP makes your savings work twice.
Learn more →Plan the move to a RRIF
Planning withdrawals before age 71 can lower your taxes in retirement and help protect your OAS.
Learn more →Who benefits most
Higher-income earners
The higher your tax bracket today, the bigger the refund each contribution brings.
First-time home buyers
Combine the Home Buyers’ Plan with an FHSA to build a larger down payment.
Couples with different incomes
A spousal RRSP can balance retirement income and lower the tax you pay as a couple.
Self-employed and business owners
Without a workplace pension, an RRSP is one of the best ways to fund your own retirement.
Frequently asked questions
Should I choose an RRSP or a TFSA?
If your income is higher now than it will be in retirement, an RRSP usually gives you more benefit. If your income is lower, or you may need the money sooner, a TFSA may be the better choice. Many people use both, and we can help you decide how to split your savings.
What happens if I contribute too much?
You can go over your limit by up to $2,000 without a penalty. Above that, the CRA charges a tax of 1% per month on the excess until it is removed.
What can I hold in an RRSP?
Savings accounts, GICs, segregated funds and other qualified investments are allowed. We help you choose between GICs and segregated funds based on your goals and timeline.
Does a workplace pension reduce my RRSP room?
Yes. If you belong to a workplace pension plan or DPSP, a pension adjustment reduces your RRSP room. Your Notice of Assessment shows how much you can still contribute.
Can I take money out before I retire?
Yes, but the amount is added to your income and taxed, and tax is withheld when you withdraw. Withdrawals under the Home Buyers’ Plan or Lifelong Learning Plan are the exceptions, as long as you repay them on time.
Review your RRSP with Devendra Kumar, CLU, CHS
DK Insurance & Investment Inc. serves families across the GTA from offices in Vaughan, Mississauga and Brampton. Call or text +1-647-761-0517 for a free, no-obligation conversation.