What savings accounts are available to me?

Registered Retirement Savings Plan (RRSP): Start saving for your retirement! Contribute what’s available in your annual contribution limit up until December 31 of the year you turn 71 years old. The contributions that you make annually can be deducted from your taxable income, and all your investments will grow tax-free. There are 3 options for withdrawing your money:

1. You can withdraw the money at any time but you will be taxed on what you withdraw and you will lose that contribution room in your account.
2. If you qualify, you can withdraw money tax-free to buy your first home (up to $35,000) or to fund yours or your spouses education (up to $20,000).
3. At age 71 or when you are ready to retire, whichever comes first, your RRSP will convert to an RRIF or you can purchase an income annuity.

Tax-Free Savings Plan (TFSA): Start saving for your short and/or long-term goals with this flexible and versatile savings account! Contribute after-tax income for the rest of your life, and let your investments grow tax-free. Remember to stay within your contribution limit – either annually or cumulative! When the money is withdrawn, you will not be required to pay tax on any of the money.

Registered Disability Savings Plan (RDSP): Start saving for the long-term financial needs of an individual with a disability. Contribute a life-time amount of $200,000 up until the end of the year that the beneficiary turns 59. Note: The beneficiary of this savings plan must be eligible for the Disability Tax Credit.

Registered Education Savings Plan (RESP): Start saving for your child’s future education! Contribute a life-time amount of $50,000, and let your investments grow tax-free. When the money is withdrawn for your child’s post-secondary education, only the growth accumulated, not your own contributions, will be taxed at a student rate.

First Home Savings Account (FHSA): Start saving for your first home! Combining features from both RRSPs and TFSAs, this savings account provided by the federal government allows you to save money for your first home, provides tax benefits, and provides other incentives to help you afford a home. This account is designed to be fairly flexible, easy to use, and tax-free! If you are thinking about buying your first home, a FHSA can be a great tool to help you achieve that goal.  

Learn more about your saving options.