How do I withdraw funds from an RRSP once I’ve retired?

When it’s time to enjoy all of your hard-earned investment, (or by the end of the year you turn 71 at the latest) you may convert your RRSP to a Registered Retirement Income Fund (RRIF). In case of an RRIF, Then you can withdraw as much as you like, as often as you like — as long as it meets the annual minimum withdrawal amounts. For more information on RRIFs, check out our RRIF FAQs.

What happens when I withdraw from my RRSP?

You’ll have to pay tax on the money you withdraw from your RRSP. The exception is if you’re using the funds to buy your first house or go back to school. But you’ll still need to put that money back in your RRSP eventually.

Will my withdrawals be taxed once I’ve retired?

Yes, you’ll have to pay tax on the money you withdraw from your RRIF, so that’s important to keep in mind during retirement planning. But once you’ve retired, that tax rate might be lower than it would’ve been when you were putting the money into your RRSP.

What’s the difference between an RRSP and an FHSA?

Both account types help Canadians save and invest with tax-deductible contributions, but there are some key differences. The main purpose of an RRSP is to help Canadians save for retirement with tax deferred growth, as long as the money remains in the RRSP. An RRSP can also be used to make a down payment on a home through the Home Buyers’ Plan (HBP) or pay for post-secondary education through the Lifelong Learning Plan (LLP). Ultimately, the money in an RRSP must either be converted into a Registered Retirement Income Fund (RRIF), used to purchase an annuity, or cashed out by the end of the year you turn 71. An FHSA, on the other hand, is exclusively designed to help save tax-free for a qualifying first home purchase. Like an RRSP, the FHSA must be closed out by age 71 at the latest.

Who is eligible for an RRSP?

Anyone who is 71 or younger, has an income, and is a Canadian resident for tax purposes can open an RRSP.

How do I open an RRSP account today?

The steps to open an RRSP can differ depending on how you want to save or invest. If you’re a BMO customer, you can open an RRSP Savings Account in just minutes through your Online Banking. If you’re looking for the advice of from an investment professional, visit a branch or book an appointment today. If you prefer to invest online, open a BMO InvestorLine Self-Directed RRSP account to get started.

Can I open more than one RRSP account?

Yes. There is no limit on the number of RRSPs you may open, but the contribution limits and other rules will apply collectively to all of your RRSPs.

What is my RRSP contribution limit?

The RRSP contribution limit for 2024 is $31,560, or 18% of the income reported on your 2023 tax return — whichever is less. Any unused contribution room from previous years is also carried forward, so it could be more. You’ll find your current RRSPR R S P contribution limit on your last Notice of Assessment from the CRAC R A, or by logging into My Account on the CRA website.

What is an RRSP deduction limit?

The RRSP contribution limit for 2024 is $31,560, or 18% of the income reported on your 2023 tax return — whichever is less. Any unused contribution room from previous years is also carried forward, so it could be more. You’ll find your current RRSP contribution limit on your last Notice of Assessment from the CRA, or by logging into My Account on the CRA website.

Can I take money out of my RRSP before I retire?

Sure you can! But depending on your situation you might want to avoid it. If you take money out of your RRSP before you retire, it’ll be subject to withholding tax, and counted as income for you in that year. There are exceptions though. You can borrow from your RRSP without penalty to finance your first home under the federal Home Buyers’ Plan, or to pay for full-time training or education as part of the Lifelong Learning Plan (LLP).

How much of my RRSP can I use to buy a house?

You can borrow up to $60,000 from your RRSP to put toward a down payment on a new home, or to fund building one, under the federal Home Buyers’ Plan (HBP). Your spouse or partner can withdraw up to the same amount, for a combined total of up to $120,000. You won’t have to pay tax on this loan as long as you pay it back in full within 15 years.

How are RRSP withdrawals taxed before retirement?

If you need to withdraw money from your RRSP before you retire (other than through the Home Buyers’ Plan or Lifelong Learning Plan), you’ll be charged a withholding tax. The rate of withholding tax depends on the amount you take out and the province you live in. The money you withdraw will be counted as income and will affect the income tax you pay for that year.

What happens if I over-contribute to my RRSP?

Don’t panic. If you’ve over-contributed to your RRSP by $2,000, there’s no penalty. You won’t get a tax break on over contributions, but you won’t be charged a penalty. Beyond that “cushion,” however, the penalty is 1% per month on the excess amount, which can add up fast.

What is the best investment to put in an RRSP?

This depends on your financial goals, investing time horizon and level of risk tolerance. Each type of investment (mutual funds, GICs, ETFs, stocks, bonds, options, etc.) has its own features and risks, and determining which is best for you depends entirely on your individual needs.

Do RRSP investments grow tax free?

No. Money in an RRSP is tax-deferred, meaning that it won’t be taxed as long as it remains in the RRSP. However, it is normally subject to tax if you withdraw from your RRSP.

Is investment income that my RRSP earns taxable?

No, there’s no tax on investment earnings while they’re in your RRSP. Funds are taxed when they come out of your RRSP or RRIF.

RRSP

Registered Retirement Savings Plans () are accounts specifically designed to help Canadians invest for retirement. See how investing with can help you achieve your retirement dreams.

Invest in your R R S P up to the annual limit and watch it grow, tax-free
Fill it with a mix of investments, like Guaranteed Investment Certificates, stocks, mutual funds and savings accounts
Get a tax break on any income you invest in your R R S P

Watch your money grow with these amazing offers.

Get $100 footnote dagger for saving regularly with a new BMO Mutual Funds account, or

Get up to $3,500footnote section when you invest with BMO Mutual Funds.

Get $100 for saving regularly with a new BMO Mutual Funds account, or
get up to $3,500^§ when you invest with BMO Mutual Funds.

table showing the customer bonus at different investment tiers
Invest	Get even more when you transfer your registered investments to BMO^§
$8,000 - $49,999	$150
$50,000 - $99,999	$300
$100,000 - $249,999	$500
$250,000 - $499,999	$1,000
$500,000 - $999,999	$2,000
$1,000,000+	$3,500

Invest with BMO and get all-in-one advice for your portfolio and financial plan. Talk to a BMO investment professional and ask to opt into these offers to claim your bonus.

Book an appointment

Schedule a call

^†Terms and conditions apply

^§Terms and conditions apply

What is an RRSP?

A Registered Retirement Savings Plan (RRSP) is a great way to save for retirement. It offers two important tax benefits. Firstly, investment income in your RRSP isn’t taxed while in the plan, so it grows faster than it would otherwise. Secondly, contributions to your RRSP are tax deductible, so contributions can lower your taxable income and your income tax bill. It’s definitely a win-win way to invest for your future!

Why invest in an RRSP?

More growth, faster returns

With an RRSP, you won’t pay tax on any growth on investments while it’s in your account. That’s a big deal, because it can help you achieve your goals faster.

The right investment mix

You can mix things up by holding various investment types in an , including stocks, bonds, , and mutual funds. That means you can create a custom portfolio to help you reach your goals.

Save on taxes

Get a tax deduction when you contribute to your -- any money you put in your will be subtracted from your income, so you’ll pay less in taxes.

Reach your retirement goals faster

Discover how to achieve your retirement dreams with our simple calculator.

RRSP Calculator

Registered Retirement Savings Plans by the numbers

18%:The amount of your income you can invest in your each year.

$32,490:The maximum RRSP contribution in 2025.

71:The age you must close your or convert to an .

How to make the most of your RRSP

Here are a few ways to make sure your is working hard for you.

Start planning early

The secret to growth is to take advantage of it as soon as possible. The earlier you start contributing to your with a Continuous Savings Plan, the more time your money has to grow tax-free.

Max out contributions

We know that life happens and it’s not always easy to put a ton away for retirement. But making small, regular contributions can help you get closer to hitting that limit each year.

Did you know? You can maximize your contribution with an loan. Learn more.

Make up for missed contributions

If you fell short of your maximum contribution, it’s not too late. The room you have left will roll over into next year, so you have another shot at saving as much as you can.

Take advantage of our savings account rates

On top of everything else a can do for you, here’s another great reason to start: Great rates and offers to help you make real financial progress right from the start. It’s easy to get started today.

How an R R S P helps you save more

Investing $10,000 annually in an could earn you 60% more in total savings over 30 years compared to a non-registered account (assuming a 6% average annual return).

Disclaimer: For illustrative purposes only. does not guarantee an annual average rate of return. Assuming a 46% tax rate applied on the non-registered account investment.

Learn more about investing in Registered Retirement Savings Plans with B M O

Compare: FHSA vs TFSA vs RRSP

Learn about the key differences between FHSAs, TFSAs and RRSPs.

When to use R R S Ps, TFSAs and RESPs

Registered accounts may seem similar, but they serve different purposes.

Getting started with saving for retirement

How to harness the power of SmartFolio for your retirement.

RRSP FAQs

General questions

Both account types help Canadians save and invest with tax-deductible contributions, but there are some key differences.
The main purpose of an RRSP is to help Canadians save for retirement with tax deferred growth, as long as the money remains in the RRSP. An RRSP can also be used to make a down payment on a home through the Home Buyers’ Plan (HBP) or pay for post-secondary education through the Lifelong Learning Plan (LLP). Ultimately, the money in an RRSP must either be converted into a Registered Retirement Income Fund (RRIF), used to purchase an annuity, or cashed out by the end of the year you turn 71.
An FHSA, on the other hand, is exclusively designed to help save tax-free for a qualifying first home purchase. Like an RRSP, the FHSA must be closed out by age 71 at the latest.

Opening an RRSP

Contribution room

Sure you can! But depending on your situation you might want to avoid it. If you take money out of your R R S P before you retire, it’ll be subject to withholding tax, and counted as income for you in that year. There are exceptions though. You can borrow from your R R S P without penalty to finance your first home under the federal Home Buyers’ Plan, or to pay for full-time training or education as part of the Lifelong Learning Plan (LLP).

Investment types

Ways to contact us

There are various ways to get in touch. Choose your preferred method.

Investing with a professional

Online investing

Book an appointment

^†Terms and conditions apply

^§Terms and conditions apply

This material is for informational purposes only. This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do not take into account the particular investment objectives, needs, restrictions and circumstances of a specific investor and, thus, should not be used as the basis of any specific investment recommendation. Investors should consult a financial advisor and/or tax information applicable to their specific situation.

All investments, including these, are subject to risk, including the possible loss of principal.

Investment professional refers to Personal Bankers, Financial Planners, Investment and Retirement Planning and Investment Specialists that are representatives of BMO Investments Inc.

RRSP

B M O Mutual Funds

B M O Canadian Market G I C footnote ‡

Please note

What is an RRSP?