Your Own Retirement Savings

Personal RRSPs are a way to save for your retirement on your own. They can be set up with your financial institution or insurance company to provide extra savings above and beyond your employment pension plan or group RRSP. They are subject to the same RRSP limits described in the section on contribution limits under the Income Tax Act. The most you can contribute to a personal RRSP is ($26,230 in 2018). The RRSP limit is equal to the previous year's defined contribution limit. For more information, please visit the Government of Canada website at: https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/pspa/mp-rrsp-dpsp-tfsa-limits-ympe.html .

You have unlimited access to the funds in your RRSP. They are not locked-in. There are no penalties for withdrawing the money before you retire. However, when you withdraw money this becomes income in the year it is taken out. Tax is withheld at the time of withdrawal.

The Canada Revenue Agency has two programs in place that allow you to borrow from your RRSPs. You can use RRSP funds to make a down payment on the purchase of your first home, called the Home Buyers' Plan. You can use RRSP funds to help finance your post-secondary education, called the Lifelong Learning Plan. These types of withdrawals from personal RRSPs are not subject to income tax as long as the amounts borrowed are paid back according to the required schedule set by Canada Revenue Agency. For more information, please visit the Government of Canada website at: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/making-withdrawals/home-buyers-plan-lifelong-learning-plan-withdrawals.html .

Please note that the above-mentioned programs do not apply to funds held in a locked-in retirement account.