RRSP Builder Account

Interest is calculated on the lowest daily balance, accrued monthly and paid semi-annually on June 30 and December 31.

In many cases, any withdrawals you make from your RRSP Builder Account will be taxed at your current income tax rate at the time you make the withdrawal.

However, if you participate in the federal government's Home Buyers Plan (HBP) or Lifelong Learning Plan (LLP), you can withdraw funds from your RRSP and the tax won't be withheld.

The Home Buyers' Plan is a program that allows you to withdraw up to $35,000 in a calendar year from your RRSPs to buy or build a qualifying home for yourself or for a related person with a disability. 

The Lifelong Learning Plan allows you to withdraw amounts from your Registered Retirement Savings Plan to finance full-time training or education for you or your spouse or common-law partner.

Please explore the links above for full details and disclosures about each plan and see if you qualify.

There is a maximum to how much you can contribute each year, and that limit—called an RRSP contribution limit—is based on your annual income. Can't make your full contribution one year? No sweat. Your contribution room can be carried forward until you’re 71, when you can no longer have RRSPs, so you can contribute more money in subsequent years until then.

Yes. You can put part or all of your RRSP contributions into a plan in your spouse's or common-law partner's name. This will be referred to as a Spousal RRSP.

In the year you turn 71, your RRSP matures and you claim the income (both the principal amount and the interest earned) from your investment.

Don't worry about getting a big tax bill. You have a number of retirement income options that allow your retirement savings to continue to grow in a tax-sheltered environment. Only payments to you from your plan are immediately taxed, so you can spread the tax on withdrawals over your retirement years.