Questions and Answers About RRSPs

Questions and Answers About RRSPs

Are regular RRSP contributions mandatory?

Payments to an RRSP are not fixed by law, although some plans set out minimum allowable contributions (e.g., $100). Contributions can be made up to 60 days after the end of a calendar year. These post-December 31 contributions may be deducted for either taxation year up to allowable limits.

How are income and capital gains in an RRSP taxed?

Income and capital gains derived from the assets of an RRSP are free of tax until the funds are withdrawn. At that time, they are taxed as regular income.