What is the maximum RRSP contribution per year?

The maximum you can contribute to your RRSP is 18% of your previous year's eligible earnings, up to the annual limit ($31,560 in 2024 and $32,490 in 2025). To this must be added your unused deductions from previous years.

What is the interest rate on an RRSP?

An RRSP is not an investment and has no interest rate. It's a savings plan in which you can make investments that generate returns in the form of interest income, dividends or capital gains. These include GICs, stocks and ETFs.

When can an RRSP be withdrawn?

You can withdraw funds from your RRSP at retirement using a RRIF. But you can also withdraw funds from your RRSP (tax-free) under the HBP and LLP. Finally, you can withdraw funds from your RRSP before retirement, for example, if you lose your job.

Is it better to contribute to an RRSP or TFSA?

There's no one-size-fits-all answer. Depending on your personal and financial situation, and your goals, it may be best to contribute to your RRSP, your TFSA, or both.

How does an RRSP work?

An RRSP is a registered plan that allows you to save for your retirement. Your contributions are tax-deductible, and your earnings are tax-free until disbursed at retirement.

What is the maximum RRSP contribution in 2024?

For 2024, the maximum RRSP contribution is $31,560 (or 18% of your previous year's eligible earnings, whichever is less). The deadline for contributing to your RRSP is March 1, 2025.

Vincent Morin

Vincent achieved financial independence and retired early (FIRE) at the age of 35. After a career in financial technologies for a large American investment bank, he founded Retraite101, a personal finance site that reaches more than 350,000 unique visitors per year and has more than 30,000 subscribers on social media. Passionate about personal finance, cycling, reading and gardening, he continues to write to inspire and motivate Quebecers to take charge of their finances.

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