What is an RRSP?

An RRSP, or Registered Retirement Savings Plan, allows you to save money during your professional life to increase your income at retirement.

When you invest in an RRSP, you obtain an attractive tax deduction that varies depending on your income. And when you invest in an RRSP with the Fonds, additional tax savings are added to this tax deduction.

Why contribute to an RRSP?

To have a comfortable retirement, you will need approximately 70% of the income you earned during your professional life. In all cases, the Québec Pension Plan (QPP) and Old Age Security benefits are not enough.

Unless you can rely on a private pension plan, it is important to contribute to an RRSP to avoid financial difficulties during retirement.

Apart from retirement, there are many other ways to use your RRSP with the Fonds.

Who can contribute to an RRSP?

Any person under the age of 71 earning income in Canada, regardless of their place of residence, can contribute to an RRSP.

Tax withheld on RRSP withdrawals

Any income you earn in your RRSP is usually exempt from tax as long as the funds remain in the plan. However, you generally have to pay tax when you cash in or make withdrawals from it.

You must include those amounts in your income tax return in the year you withdraw the funds. Income tax on RRSP shares is calculated based on the rates in effect at the time of redemption.

Tax withheld on amounts withdrawn from an RRSP* 

Amount cashed in (gross)




$5,000 or less




 $5,000.01 to 




 $15,000.01 or more




* These figures are subject to change.

Contribution deadline

To be eligible for deduction in the previous tax year, your RRSP contribution must be paid before the end of the first 60 days of the current year.

For the 2017 tax year, the RRSP contribution deadline is March 1st, 2018.

Basic rules to know

  • The annual contribution limit is 18% of your earned income for the previous year.
  • For 2017, the limit is $26,010.
  • Contributions to your employer’s pension plan reduce the amount you can invest in an RRSP.
  • You may contribute to your RRSP or to your legal spouse’s or common-law partner’s RRSP.
  • Your unused contribution room (annual contribution limit less contributions paid) for a year can be carried forward.
  • Refer to the “RRSP Deduction Limit Statement” section of the notice of assessment sent each year by the Canada Revenue Agency.
  • Excess contributions are subject to a limit of $2,000.
  • You can contribute to your RRSP until December 31 of the year you turn 71.
  • You must transfer your RRSP to an RRIF (Registered Retirement Income Fund) by December 31 of the year you turn 71.

What is a spousal RRSP?

A spousal RRSP is another opportunity to maximize your retirement income while reducing taxes now.

To learn more about spousal RRSP 

Please read the prospectus before investing. Copies of the prospectus may be obtained on its Website, from a local representative or at the offices of the Fonds de solidarité FTQ. The shares of the Fonds de solidarité FTQ are not guaranteed, their value changes and past performance may not be repeated.

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