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Registered Retirement Savings Plan (RRSP) Guide
Understanding RRSP basics
- A Registered Retirement Savings Plan (RRSP) is designed to help Canadians save for retirement.
- RRSP contributions may reduce taxable income in the year they are made.
- Investments inside an RRSP grow on a tax‑deferred basis until withdrawal.
- RRSP can hold investments such as stocks, ETFs, mutual funds, and guaranteed investment certificates (GICs).
- RRSP withdrawals are generally taxed as income.
- Quick overview : An RRSP helps Canadians save for retirement by deferring tax until the money is withdrawn.
A Registered Retirement Savings Plan (RRSP) is a savings plan registered with the Canadian federal government that you can contribute to for retirement purposes.
When you contribute to an RRSP, your contributions are generally tax-deductible, which may reduce your taxable income and lower the amount of tax you pay for that year. Any investment income earned from investments held within the RRSP can then grow tax-deferred, as long as the money remains within the RRSP until it's withdrawn.
RRSP vs. RSP
An RSP is simply another name often used for an RRSP. When you open an RSP, the financial institution registers it with the CRA. Once registered, it becomes an RRSP and is subject to the rules of an RRSP in accordance to relevant tax legislation.
When should you talk to a TD Personal Banker?
Consider speaking with a TD Personal Banker if you:
- Are unsure about how an RRSP could benefit you.
- Want help in deciding between investment options, such as an RRSP, TFSA or non-registered savings.
- Have a higher income year and are looking to make the most of available registered plan benefits.
- Are planning a large withdrawal (for example: retirement, first home purchase, education).
- Need help selecting the right mix of investments.
- Have unused contribution room and want to use it.
A TD Personal Banker can help align your RRSP strategy with your income, life stage, and financial goals, potentially improving long-term outcomes.
RRSPs could help you meet your financial goals
Meet with us in person or over the phone and let us show you how.
How do RRSPs work?
Understanding contribution limits and investment options can help you make the most of an RRSP.
Contribution limits
Your RRSP contribution limit for 2026 is:
- 18% of your 2025 earned income, or $33,810 (whichever is lower).
- Unused contribution room.
- Subject to pension adjustments.
You can check the Canada Revenue Agency (CRA) Notice of Assessment or your CRA Account for your current contribution limit.
Investment Options
You have flexibility to invest in a range of investment options within an RRSP¹, depending on the type of plan, provided they are qualified investments as defined under the Income Tax Act, including:
- Cash
- GICs (guaranteed returns over a fixed term)
- Mutual funds (pooled investments)
- Bonds (government or corporate)
- Stocks (listed securities)
- ETFs (index-tracking funds)
Investment income earned from these investments is tax-deferred within the RRSP until funds are withdrawn.
What is the recommended age to open an RRSP?
There is no minimum age required to open an RRSP, although some financial institutions may require the age of majority. However, you can only contribute once you have an available RRSP contribution room. You can contribute until December 31 of the year you turn 71.
Generally, the earlier you start, the greater the potential to take advantage of compound growth, meaning that over time, as your investments earn money, those earnings can also start earning money, helping your savings grow more quickly. (Use our compound interest calculator to see how your interest earning investments could benefit from compound growth).
To learn more about contributing to an RRSP, review our RRSP Contribution Rules guide.
What are the benefits of investing in an RRSP?
- Tax-deferred growth: Investment income grows tax-free while inside the RRSP.
- Tax deductions: Contributions may be used to reduce taxable income.
- Flexible timing: Carry forward unused contribution room.
- Income splitting: If you earn more than your spouse or common-law partner, a Spousal RRSP may help reduce your overall household taxes.
- Funding goals: Use for first home (Home Buyers Plan) or education (Lifelong Learning Plan)².
When advice helps:
A TD Personal Banker can help you determine how an RRSP can help you achieve your financial goals and how to use RRSPs alongside other accounts for maximum benefit.
When can I withdraw my money?
You can withdraw from your RRSP at any time (unless locked-in), but:
- Withdrawals are generally taxed as income, unless qualified under conditions set through the Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP).
- A portion of your withdrawal may be withheld and remitted to the government as prepayment toward any tax owed.
- Withdrawals do not restore contribution room.
To learn more about withdrawing from an RRSP, review our RRSP Withdrawal Rules guide.
How long can my RRSP stay open and when is the RRSP contribution deadline for every year?
You must close your RRSP by December 31 of the year you turn 71 by:
- Converting it to a Registered Retirement Income Fund (RRIF)
- Purchasing an annuity
- Withdrawing the funds
RRSP contribution deadlines:
- 2026 tax year: March 1, 2027
- 2025 tax year: March 2, 2026
For key RRSP Contribution dates, review our RRSP Deadline guide.
Frequently asked Questions about RRSP
The right contribution amount depends on your income, tax situation, and long-term retirement goals. A TD Personal Banker can help you understand the benefits of an RRSP and assist you in developing a strategy that aligns with your financial goals.
It depends on your income now versus what you expect in retirement. RRSPs offer tax deferral, while TFSAs offer flexibility with tax-free withdrawals. A TD Personal Banker can help you understand both plans, so you can make an informed decision about which option, or combination of options, may work best for you.
While many people contribute before the deadline, contributing throughout the year or earlier may allow your investments more time to grow and benefit from the power of compounding, where any earnings can generate additional earnings over time. A TD Personal Banker can help you learn about your contribution options.
You can carry it forward and use it when your income is higher for potentially greater tax savings. You may also speak with a tax advisor to understand what options work best for you.
Regular reviews are important to ensure your investments stay aligned with your goals and market conditions. A TD Personal Banker can help you explore your options and adjust your strategy as your needs and goals evolve.
Programs like the Home Buyers’ Plan or Lifelong Learning Plan allow you to withdraw funds under specific conditions. A TD Personal Banker can walk you through eligibility and ensure you understand the repayment requirements.
Withdrawals are taxed as income and can impact your overall financial plan. Before making a decision, it can be helpful to speak with a TD Personal Banker to understand the implications and explore alternatives.
RRSPs can hold a range of qualified investments, each with different levels of risk and return. Choosing among the available options can be complex, so speaking with a TD Personal Banker can help you understand your choices and determine which options may align with your needs and goals.
Getting started can feel overwhelming with so many options available. A TD Personal Banker can guide you step-by-step, helping you set goals, choose investments, and build confidence in your plan.
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