RRSP Craze!

Registered Retirement Saving Plan (RRSP) contributions is one of the many topics we can discuss with you. The most common question we receive is...

"Should I contribute to my RRSP or my TFSA?"

The answer is never the same as everyone is different. Our goal is to ensure our clients contribution matches their overall financial plan. Do you have a financial plan in place that will help you make the right decision?

Below are some of the topics we discuss with our clients:

  • An RRSP lets you defer taxes – an advantage if your marginal tax rate is expected to be lower in retirement. A lower tax rate is not always the case at retirement.
  • You pay tax on your RRSP withdrawal because you contributed with PRE-TAX DOLLARS. TFSA withdrawals are TAX FREE because you made the contributions with after-tax dollars.
  • The last day you can make contributions to your RRSP is December 31 of the year you turn 71. At that time, you require to transfer your RRSP to a REGISTERED RETIREMENT INCOME FUND (RRIF) which allows you to begin withdrawing from the account. A TFSA has no maximum age restrictions.

If you have any questions regarding your RRSP contribution or need to discuss or build an overall financial plan, give us a call (905-713-6450) or email us at info@carruthersfinancial.ca, we are here to help.

"To shorten winter, borrow some money due in spring." - W.J. Vogel

Carruthers Financial


Mutual funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.