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.
Eligibility
You can only open a Registered Retirement Savings Plan (RRSP) if you’re under the age of 71. Once you turn 71, you must open a Registered Retirement Income Fund (RRIF) and convert your RRSP.
How to open an RRSP
Follow the steps below to open an RRSP:
- Sign in to the Wealthsimple app on your mobile device
- From the Home tab, scroll down and tap Add or move account
- Tap Open a new account
- Choose RRSP from the options
- 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 what you'd like to invest in
- Select Next
- Follow the prompts to open the RRSP
What you can invest in with an RRSP
You can invest an RRSP in a variety of Wealthsimple products:
- Stocks, options, and ETFs
- Self-directed portfolios
- Managed portfolios
- Registered savings account
- Bond portfolio
- Private equity
- Private credit
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.
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.
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