RRSP
Loopholes Tagged "RRSP"
Plain-English guides to Canadian legal rights and workarounds related to RRSP.
CDIC Deposit Insurance Stacking — Multiply Coverage by Using Separate Ownership Categories
CDIC insurance is not just $100,000 per person.
Beneficiary Designations: Bypassing Probate on RRSPs, RRIFs & TFSAs
Naming a beneficiary on your RRSP, RRIF, TFSA, and life insurance policies causes those assets to pass directly to your beneficiary outside of your estate — avoiding probate fees (up to 1.5% in Ontario), delays of 6–18 months, and public disclosure of your estate.
RRSP Home Buyers' Plan — Borrow $35,000 Tax-Free from Your Own Retirement Savings
First-time homebuyers can withdraw up to $35,000 from their RRSP tax-free to buy or build a qualifying home — and repay it over 15 years with no interest charged by CRA.
T1213 — Get CRA to Reduce Your Payroll Tax Now Instead of Waiting for a Refund
If you consistently receive a large tax refund, you've been giving CRA an interest-free loan all year.
Group RRSP Employer Matching — The 100% Instant Return You Might Be Leaving on the Table
Employer matching in a Group RRSP is effectively a 50–100% immediate return on your contribution — fully enrolled employees who don't contribute to the match are giving up a significant portion of their compensation.
OAS Clawback Planning — Keep Your Old Age Security by Managing Taxable Income
Old Age Security benefits are clawed back at 15 cents per dollar of net income above a threshold (~$90,997 in 2024) — proactive income management can preserve thousands in annual OAS payments.
RRSP Overcontribution $2,000 Cushion — Use the Tolerance Carefully Without Triggering the 1% Penalty
CRA allows most adults a lifetime $2,000 RRSP overcontribution cushion before the 1% monthly excess-contribution tax applies.
Income Splitting with a Spousal RRSP
A spousal RRSP allows the higher-earning partner to contribute to the lower-earning partner's RRSP, claim the deduction at a higher marginal tax rate today, and then have the lower-earning partner withdraw those funds in retirement at a lower marginal rate — potentially saving tens of thousands of dollars in lifetime tax.
Superficial Loss Rule — Avoid the 30-Day Repurchase Trap When Harvesting Tax Losses
Canada's superficial loss rule disallows capital losses if you (or an affiliated person) repurchases the same or identical property within 30 days before or after the sale — knowing the rule lets you harvest losses without triggering it.
RESP-to-RRSP Conversion (Accumulated Income Payment)
If a child doesn't pursue post-secondary education, RESP subscribers can roll up to $50,000 of accumulated income directly into their RRSP — tax-deferred — avoiding a hefty penalty tax, provided they have available RRSP room.
RRSP Lifelong Learning Plan — Borrow From Your RRSP for School Without Immediate Tax
Canada's Lifelong Learning Plan lets you withdraw up to $10,000 per year and $20,000 total from your RRSP to fund full-time education for yourself or your spouse/common-law partner, without immediate withholding tax or income inclusion if you repay on schedule.
RDSP Rollover From a Deceased Parent's RRSP or RRIF — Move Retirement Money Into a Disabled Child's RDSP
In some cases, amounts from a deceased parent's or grandparent's RRSP, RRIF, or registered pension plan can be rolled into a financially dependent infirm child's or grandchild's RDSP on a tax-deferred basis.
RRSP Meltdown Strategy — Draw Down Your RRSP Tax-Efficiently Before Forced Conversion
Canadians who will have large RRSPs at 71 face a 'RRSP time bomb' — mandatory RRIF minimum withdrawals that push them into high tax brackets.