Repaying an RRSP withdrawal under the HBP

Has the time come to start repaying the amounts you withdrew from your RRSP? Whether you participated in the HBP through the Fonds or another institution, read on to learn why it pays to make the repayments at the Fonds and how it’s done.

My withdrawals were from an RRSP with another institution. What is the advantage of making my repayments to an RRSP at the Fonds?

* The extra tax credits are available only to individuals who participated in the HBP at another financial institution but have chosen to make their repayments to an RRSP at the Fonds.

** Certain conditions, restrictions, and exclusions apply. Savings applicable on new auto and home policies. For a free no-obligation quote, call 1 866 SSQ AUTO (1 866 777-2886) and mention promo code FONDS005 or visit https://ssq.ca/fonds-en.

How can you repay your HBP withdrawal at the Fonds?

What are the repayment terms?

You must repay your withdrawals over a maximum of 15 years.

You must make your first repayment no later than 60 days after the end of the second year following the date of withdrawal, and the amount of this repayment must be at least 1/15 of the amount you withdrew.

Example: If, in October 2013, you withdrew an amount from your RRSP (corresponding to all or a part of your RRSP), you would have until March 1, 2016 to repay 1/15 of the amount withdrawn.

How do I repay my RRSP with the Fonds?

Any purchases of Fonds shares made between March 1 of a year an amount is due and the 60th year of the following year will automatically be considered as a repayment under the HBP.

In addition, any subscriptions exceeding the amount due will be considered as share purchases giving right to the Fonds tax credits and the RRSP deductions. In the event you make your repayment through payroll deductions (with immediate tax savings), we recommend that you contact a Shareholder Services’ employee to learn the impact of the immediate tax savings in connection with the HBP.

How do I track amounts due and repaid?

The Canada Revenue Agency (CRA) will send you an HBP statement of account showing the amount you have repaid so far, the remaining balance and the amount you have to contribute to your RRSP and designate as a repayment for the following year. 

The Fonds will also send you a statement each year showing your repayment of the portion pertaining to the labour-fund tax credits.

What happens if the annual repayment to the Fonds is not made by the prescribed deadline?

The Fonds will have to issue a Relevé 10 evidencing a special tax on the amount due. This special tax is equal to the percentage of the tax credit you received (example: 25% for the 2015 tax year) on the annual amount due but not repaid.

Furthermore, you will have to add the amount due to your taxable income.

Can I, in certain circumstances, be exempted from repaying the RRSP with the Fonds?

Yes. You could be exempted if you invoke one of the redemption criteria set out in the Fonds’ Incorporating Act or the purchase-by-agreement policy. Depending on the criterion invoked, the exemption could be temporary or permanent.

For more information, please refer to the Fonds’ prospectus or contact Shareholder Services.

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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