Overview
A Registered Retirement Savings Plan (RRSP) is a tax-sheltered account designed to help Canadians save for retirement. You don’t have to pay tax on any interest, dividends, or capital gains you earn within the account.
Besides saving for retirement, you can also use funds from your RRSP to buy a home or even fund your education.
Contribution limits and withdrawals
There's a limit to how much you can contribute to an RRSP every year. Also, withdrawing from an RRSP before retirement can have tax implications.
Types of RRSPs on Wealthsimple
You can open managed and self-directed investing RRSPs on Wealthsimple:
- You can open as many managed RRSPs as you like.
- You can open one self-directed RRSP.
How to open an RRSP
Follow the steps below to open an RRSP:
- Sign in to the Wealthsimple app on your mobile device
- Scroll down to Accounts and tap + Add an account
- Follow the prompts to open the RRSP
- Log in to your Wealthsimple account
- Select + Add an account from the Home page
- Select the Investing tab
- Choose RRSP from the options
- Choose how you'll use the account (Managed portfolios or Self-directed investing)
- Select Next
- Follow the prompts to open the RRSP
Frequently asked questions
Why is my SIN required to open an account with Wealthsimple?
All registered accounts (such as a TFSA or RRSP) must be registered with the CRA. In order to register these accounts with the CRA, we require your SIN. Additionally, all non-registered accounts require that we verify your identity with a third-party credit reporting agency to follow FINTRAC identity verification rules, which also requires your SIN.
Can I have an RRSP with Wealthsimple if I already have another RRSP elsewhere?
Yes, you can have as many RRSPs as you wish, as long as your total contributions don't go over your contribution limit.
Can I open a Spousal RRSP?
Yes, check out this article to learn how.
Can I convert another account into an RRSP?
No, converting accounts isn't possible. If you wish to move funds from another account to an RRSP, you may be able to set up an internal transfer. If you are withdrawing funds from a registered account to transfer into your RRSP, there may be tax implications.
What are the fees in a managed RRSP with Wealthsimple?
Wealthsimple’s standard management fee is 0.5% for all managed accounts. For accounts over $100,000, this fee drops down to 0.4%. Learn more about fees.
Can I hold cash in my managed RRSP instead of investing my funds?
No, there is no option to hold cash in Invest accounts. However, you can consider moving your portfolio to our high-interest savings ETF option for a no-risk investing alternative.
Comments
0 comments
Please sign in to leave a comment.