Self-Directed RRSP

There are contribution limits on RRSPs. To find out the exact amount you can contribute for the current year, check your most recent Notice of Assessment from the Canada Revenue Agency.

As a guideline, your allowable RRSP contribution for the current year is the lower of:

• 18% of your earned income from the previous year
• The maximum annual contribution limit for the current tax year, minus your pension adjustment from company-sponsored pension plan contributions. Your unused contribution from previous years can also be carried forward.

A beneficiary named on your RRSP does not have to wait until after your bills are paid or assets distributed to receive the money^{Disclaimer 1}. What’s more, naming your spouse/common-law partner or a dependent child as a beneficiary will allow your executor some flexibility in determining who pays the tax bill on your death – your estate, your beneficiary or a combination of both (for income-splitting purposes). Speak to your tax advisor and a lawyer familiar with estate planning laws in your province for more information.

If you are a Quebec resident, you cannot name a beneficiary directly on any registered account but you can set this up in your will.

You can choose to hold everything from stocks, exchange traded funds (ETFs), options and mutual funds to fixed-income investments like bonds and GICs, and more, as long as they are qualified investments.

Find out more about the investments you can hold in your RRSP in the Investing Academy, part of the Inspired Investor^™ online magazine.

Yes—you can use it to buy a home or go back to school with the Home Buyers’ Plan and the Lifelong Learning Plan. These let you borrow from your RRSP and pay it back over time without any penalty.