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Invest in your future while helping lower your income tax bill today.
Invest in an RRSP
- What is anRRSP?
- RRSPCalculator
- RRSP FAQs
- Invest in an RRSP
- RRSP FAQs
- Invest in anRRSP
What is an RRSP?
An RRSP is a registered investment account that lets you save for your retirement by deferringtaxes on your investment earnings. This means more of your money can stay invested and growfaster.
An RRSP also helps you lower your tax bill today, by allowing you to deduct RRSPcontributions from your taxable income. By the time you retire you will likely be in a lowertax bracket, so withdrawals are taxed at a lower rate than today.
Registered Investment Accounts
Registered investment accounts offer unique tax advantages to help you save for thefuture. For example, the Registered Retirement Savings Plan (RRSP) lets you deduct yourcontributions from your taxable income now and defer the taxes until you withdraw thatmoney in retirement, while investment income you earn in a Tax-Free Savings Account(TFSA) is never taxed. The features, benefits and rules for registered accounts aredetermined by the Government of Canada.
Here’s why nearly half of Canadians polled invest in an RRSP1:
- Use an RRSP to save for retirement while also saving for anything in a TFSA
- Contributions reduce your annual income, lowering your tax bill
- Taxes on your investment income are only paid when withdrawn
- You can borrow money from your RRSP to go to school2 orbuy your first home3 without penalty, providedit is repaid within the required time
- You can make up for missed contribution room from previous years
Exclusive Benefits When You Invest With RBC
How an RRSP Works
Here's how an RRSP can help you save for a comfortable retirement:
An RRSP is a type of registered investment account, which means you canhold income-generating investments in it versus just cash (like asavings account).
The types of investments you can buy in your RRSP depend on where youopen an account. You also want to consider your appetite for risk whenchoosing investments.
RBC Royal Bank: Ideal if you want investment advice and access toan advisor – in-person, byphone or over video.
Offersmutualfunds,GICsandsavingsdeposits
RBC DirectInvesting opens in newwindow7: Idealif you want to make your own investment decisions
See AlsoWhat is an RRSP (Registered Retirement Savings Plan) & How Does It Work?12 Benefits of Investing in an RRSP | 2023 TurboTax® Canada Tips401(k) Equivalent in Canada: Similarities and DifferencesRRSP Withdrawal Rules: What You Need to KnowOffers stocks, options, Exchange-Traded Funds (ETFs),mutual funds, bonds and GICs
RBC InvestEase opens in newwindow6: Ideal if youwant to invest online and access Portfolio Advisors
Offers ETF portfolios designed for different investors(each portfolio holds a diverse mix of ETFs)
Waysto Invest Your Money at RBC
Tip: At RBC, you can open an RRSPwith any amount you are comfortable with. Just keep your contribution(deduction) limits in mind.
Since the investment income you earn in an RRSP (interest,dividends or capital gains) is not taxed until it’swithdrawn, it has the opportunity to grow faster than it would in anon-registered account.
Another way to save faster is by setting up regular (weekly, monthly,etc.) automaticcontributions into your RRSP.
Dividend:
Distribution of a portion of a company's earnings, decided by theboard of directors, to a class of its shareholders. Dividendsare often quoted in terms of the dollar amount each sharereceives (dividends per share or DPS).
Capital Gains or Capital Loss:
Profit or loss from the sale of real estate, stocks, mutualfunds, and other holdings classified as capital assets under thefederal income tax legislation. The tax treatment of capitalgains is different from other types of investment income such asdividends and interest income.
- You decide how much to save and how often—weekly, bi-weekly,monthly—it’s up to you.Tip: Keep your available RRSP contribution (deduction) roomin mind when setting up automatic contributions.
- Contributions are automatically debited from your bankaccount (at RBC or another financial institution).
- You can change how much you want to save, how often youcontribute, and stop or pause your contributions at anytime.
By December 31 of the year you turn 71, you must stop contributing toyour RRSP and convert it to an income option such as a RegisteredRetirement Income Fund (RRIF) or annuity.A RRIF is like an extension of your RRSP, but instead of putting moneyin, you withdraw money to use throughout retirement.
You may be able to borrow from your RRSP for other purposes, as well.
Here are a few things to know:
- Withdrawals from your RRSP or RRIF are considered part of yourtaxable income.
- Withdrawals can affect your eligibility for government benefits,such as Old Age Security (OAS).
- Early withdrawals from your RRSP will raise your tax bill and have awithholding tax deducted upfront.
- The HomeBuyers’ Plan may let you borrow up to $35,000 from your RRSPto buy your first home.3
- The Lifelong LearningPlan may let you borrow up to $10,000 in a calendar year (toa maximum of $20,000) from your RRSP to cover training or educationfor yourself or your spouse.2
Numbers to Know
$30,780
2023 RRSP deduction limit—or 18% of your earned income the previous year—whichever islower
$35,000
Maximum amount you may be able to borrow from your RRSP to buy your first home3
71
The age at which contributions stop and you need to convert your RRSP to an incomeoption (like a RRIF)
See How Saving Regularly Could Help Your RRSP Grow
The following chart shows how $50 contributed weekly, earning 6% interest, can grow to over $218,000 over 30 years.
The following chart shows how $50 contributed weekly, earning 6% interest, can grow to over $218,000 over 30 years.
RRSP Calculator
RRSP CalculatorSee how convenient it is to save with regular, automatic contributions to your RRSP*.
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Contribution Rules, Fees & More
RRSP Rules and Contributions
Get details on eligibility, contributions, withdrawals and other importantinformation.
Read More about RRSP rules and contributions
RRSP Fees
If you transfer your RBC RRSP to a financial institution outside RBC (and itsaffiliates), a $150.00 fee will apply.
LearnMore about RRSP fees
TFSA vs RRSP vs FHSA Account
Deciding between a TFSA and an RRSP or an RBC FHSA account?
CompareAccounts TFSA vs RRSP vs Savings
RRSP FAQs
Although you can take money from your RRSP before you retire, it's notrecommended because of the negative impact on your retirement plan—taxes on withdrawals are usually higher during your working years, plusyou lose the contribution room used to make the original contribution.Withdrawals must be declared as income on your tax return at the end ofthe year and withholding tax will also be deducted from the amount youwithdraw.
If you decide you would like to withdraw from your RRSP, you can do so inseveral ways:
- Call us at1-800-463-3863.
- Visit your branch. Werecommend calling1-800-769-2511 tomake an appointment.
There is a service fee of $150.00 for the transfer of property from anRRSP to a company thatis not a subsidiary of Royal Bank of Canada. This fee is subject tochange. In the eventthis fee changes or new fees are introduced, RBC will notify clients bymail orelectronically at least 30 days before the effective date of the change.
- Individual RRSP: The most common type of RRSP is a plan registeredin your name. The investments held in the plan and all the taxbenefits belong to you.
- Spousal RRSP: When you contribute to a spousal RRSP, you still getthe tax deduction but the plan is registered in your spouse's name.(Your spouse's contribution limit to his or her own plan is notaffected.) It’s a great income-splitting option if one of you earnsmore than the other.
- Locked-in RRSP: If you leave your employer before you retire, youmay be offered the option to manage your vested pension funds. ALocked-in RRSP—Locked-in Retirement Account (LIRA) in someprovinces—enables you do this.
- Group RRSP: Some employers offer a Group RRSP, a collection ofindividual RRSPs for the company’s employees. As an employee, yourRRSP contributions are taken from your pre-tax pay through payrolldeductions, reducing your tax burden immediately.
At RBC, you can open an RRSP at:
- RBC Royal Bank: Ideal if you want investment adviceand access to an advisor—in-person, by phone or over video. Choosefrom mutualfunds, GICsand savingsdeposits to hold in your RRSP.
- RBCDirect Investing : Ideal if you want to tradeand invest yourself using powerful online tools and resources.Choose from stocks, options, Exchange-Traded Funds (ETFs), mutualfunds, bonds and GICs to hold in your RRSP.
- RBCInvestEase : Ideal if you want to investwithout having to research a single investment. Answer a fewquestions and RBC InvestEase will match you to aprofessionally-built ETF portfolio.
The types of investments you can buy in your RRSP depend on where youopen an account. You also want to consider your appetite for risk whenchoosing investments.
- RBC Royal Bank: Offers mutual funds,GICs and savingsdeposits. Ideal if you want investment advice and access toan advisor—in-person, by phone or over video.
- RBCDirect Investing : Offers stocks, options,Exchange-Traded Funds (ETFs), mutual funds, bonds and GICs. Ideal ifyou want to trade and invest yourself using powerful online toolsand resources.
- RBCInvestEase : Offers ETF portfolios designed fordifferent investors (each portfolio holds a diverse mix of ETFs).Ideal if you want to invest without having to research a singleinvestment.
Although you can take money from your RRSP before you retire, it's notrecommended because ofthe negative impact on your retirement plan due to taxes on withdrawals.Withdrawals must bedeclared as income on your tax return at the end of the year andwithholding tax will alsobe deducted from the amount you withdraw.
If you decide you would like to withdraw from your RRSP, we encourage youto first use our online booking tool to schedule a time to speakwith an advisor byphone.
Yes, you can use your RRSP funds to cover an emergency situation.However, there is a taxconsequence to doing so and an impact on your retirement plan. Anywithdrawal is consideredtaxable income for the year and a withholding tax will be deductedupfront when you withdrawthe funds.
Yes, you can set up automatic contributions to your RRSP using fundsfrom your chequing or savings account at RBC or another financialinstitution.Try the RRSPcalculator to see the benefits of regular, ongoingcontributions.
This amount varies per person.To find out the exact amount you can contribute for the current year,check your most recent Notice of Assessment from the CRA, which you canaccess through the “My Account” function on the CRA website.
As a guideline, your allowable RRSP contribution for the current year isthe lower of:
- 18% of your earned income from the previous year
- The maximum annual contribution limit for the tax year
- The remaining limit after any company-sponsored pension plancontributions
Below are the maximum annual RRSP contribution limits from 2013-2021
| Year | Contribution Limit Per Year |
|---|---|
| 2013 | $23,820 |
| 2014 | $24,270 |
| 2015 | $24,930 |
| 2016 | $25,370 |
| 2017 | $26,010 |
| 2018 | $26,230 |
| 2019 | $26,500 |
| 2020 | $27,230 |
| 2021 | $27,830 |
| 2022 | $29,210 |
| 2023 | $30,780 |
See All FAQs
Invest in an RRSP Today
Choose from the following options to open or contribute to anexisting account:
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*
These results are general estimates only and(i) are based on the accuracy and completeness of the data you have entered,(ii) are based on assumptions that are believed to be reasonable, and(iii) are for informational purposes only and should not be relied on foradvice.Actual results may vary, perhaps to a large degree.You should consult your professional advisor before taking any action.Thiscalculator tool does not represent or replace a comprehensive financial plan orrepresent any type of financial planning service. The scope of this analysis islimited to one aspect of your financial goals.
Royal Bank of Canada does not make any express or implied warranties orrepresentations with respect to any information or results in connection withthis calculator.Royal Bank of Canada will not be liable for any losses or damages arising fromany errors or omissions in any information or results, or any action or decisionmade by you in reliance on any information or results in connection with thiscalculator tool.
1)
RBC2020 Financial Independence in Retirement Poll. Findings from the 30thannual RBC RRSP Poll, conducted by Ipsos from December 10 to 17, 2019 on behalfof RBC Financial Planning, through a national survey of 2,000 Canadians aged 18+who completed their surveys online. Quota sampling and weighting are employed tobalance demographics to ensure that the sample's composition reflects that ofthe adult population according to Census data and to provide results intended toapproximate the sample universe. The precision of Ipsos online polls is measuredusing a credibility interval. In this case, the poll is accurate to within±2.2 percentage points had all Canadian adults been polled. All samplesurveys and polls may be subject to other sources of error, including, but notlimited to coverage error, and measurement error.
2)
Under the Lifelong Learning Plan, you can withdraw up to $10,000 per calendaryear for your own or your spouse's full–time training or post–secondaryeducation.The total amount that can be withdrawn is $20,000 each with withdrawals over amaximum of four consecutive years.At least 10% of the amount borrowed must be repaid each year, over a maximumperiod of 10 years.
3)
You can withdraw up to $35,000 from your RRSP to buy your first home under theHome Buyers’ Plan.The funds must have been on deposit at least 90 days before you withdrew them,and a signed agreement to buy or build a qualifying home is required.At least 1/15 of the funds must be repaid each year, beginning two years afterthe funds were withdrawn. For details see Canada Revenue Agency Home Buyers’Plan.
4)
Assets in an RRSP must be Qualified Investments under the Income Tax Act. If theTFSA holds non-Qualified Investments, it could be subject to tax.
5)
Real-time streaming quotes are available on stocks and ETFs for all clients.Real-time streaming quotes are also available on options and over-the-counter(OTC) securities for Royal Circle and Active Trader clients, upon accepting theterms and conditions of all exchange agreements on the RBC Direct Investingonline site.
6)
RBC InvestEase is a restricted portfolio manager providing access to modelportfolios consisting of RBC iShares ETFs with each model portfolio holding upto 100% of RBC iShares ETFs. RBC iShares ETFs are comprised of RBC ETFs managedby RBC Global Asset Management Inc. (RBC GAM) and iShares ETFs managed byBlackRock Canada Limited (BlackRock Canada). RBC GAM and BlackRock Canada haveentered into a strategic alliance to bring together their respective ETFproducts under the RBC iShares brand, and to offer a unified distributionsupport and service model for RBC iShares ETFs.Other products and services may be offered by one or more separate corporateentities that are affiliated to RBC InvestEase Inc., including withoutlimitation: Royal Bank of Canada, RBC Direct Investing Inc., RBC DominionSecurities Inc., RBC Global Asset Management Inc., Royal Trust Corporation ofCanada and The Royal Trust Company. RBC InvestEase Inc. is a wholly-ownedsubsidiary of Royal Bank of Canada and uses the business name RBC InvestEase.The services provided by RBC InvestEase are only available in Canada.
7)
RBC Direct Investing Inc. and Royal Bank of Canada are separate corporateentities which are affiliated. RBC Direct Investing Inc. is a wholly ownedsubsidiary of Royal Bank of Canada and is a Member of the Investment IndustryRegulatory Organization of Canada and the Canadian Investor Protection Fund.Royal Bank of Canada and certain of its issuers are related to RBC DirectInvesting Inc. RBC Direct Investing Inc. does not provide investment advice orrecommendations regarding the purchase or sale of any securities. Investors areresponsible for their own investment decisions. RBC Direct Investing is abusiness name used by RBC Direct Investing Inc.
Royal Bank of Canada and Royal Mutual Funds Inc. (RMFI) make no warranties,express or implied, as to the accuracy or completeness of the informationcontained herein.
Royal Bank of Canada and RMFI shall not be liable for any losses or damagesarising from any errors or omissions in information contained in thiscalculator.
Financial planning and investment advice are provided by RMFI. RMFI, RBC GlobalAsset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canadaand The Royal Trust Company are separate corporate entities which areaffiliated. RMFI is licensed as a financial services firm in the province ofQuebec.
Information about the Registered Retirement Savings Plan is based on what iscurrently available from the Canadian government and can be subject to change.
