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Self-Directed Registered Retirement Savings Plan (RRSP)†

An RRSP, or Registered Retirement Savings Plan, is a tax-deferred savings plan designed to help Canadians save for retirement. Contributions to an RRSP may be eligible for tax deduction, which can help reduce your taxable income for the year. Also, the funds within the RRSP  grow tax deferred. With a self-directed RRSP, you have complete control over your investments and can diversify your portfolio to hold a wide range of assets including stocks, ETFs and mutual funds that fit your risk profile. This offers greater flexibility and potential for higher returns.

 

  • Grow your retirement fund, defer taxes

    Your investments within the RRSP grow tax-deferred, which allows you to harness the power of compounding to grow your money faster.

  • Lower your current tax bill

    Contributions made to your RRSP are generally tax-deductible, which can reduce your annual taxable income, thereby, lowering the tax you pay. 

  • Flexibility and better control

    You can hold a wide-range of assets within a single self-directed RRSP that can give you better control and a clearer picture of your retirement portfolio.

  • Trade across markets in Canada and the U.S.

    Diversify your portfolio and build balance with access to major markets across North America.

     

At TD Direct Investing, we empower you with the right tools to take care of the administration of your account,from registering your account to transfers from another financial institution, while also offering the ability to make contributions and withdrawals online. Visit us at td.com/moneymanagement for any questions on managing your RRSP.

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Saving for the future with a Registered Retirement Savings Plan (RRSP)

Canadians use an RRSP not only to save for retirement, but to grow investments as well. Learn how you can use this plan to save and build your nest egg, while taking advantage of tax-deferred benefits.

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Am I eligible for an RRSP?

To contribute to an RRSP, you must:

  • Be a Canadian resident with a valid Social Insurance Number (SIN), for tax purposes.
  • Have earned income in a previous year.
  • File an income tax return in Canada to build your RRSP contribution room.
  • Be younger than 72 years. You cannot contribute to your RRSP after December 31 of the year you turn 71.
  • Be of the age of majority in your province.

Things to consider to invest in an RRSP for the 2025 tax year

Comparing RRSP to TFSA at TD Direct Investing

Whether you're saving for retirement, homeownership or education, both RRSPs and TFSAs can be an option. 

TFSA

RRSP
Primary purpose
Investing for any goal
Generally, for retirement, HBP or Lifelong Learning Plan (LLP) withdrawals
Annual contribution limit
$7,0001  PLUS unused contribution room from previous years
18% of previous year’s earned income (maximum limits apply), less pension adjustments
Contributions
Not tax-deductible
Generally, tax-deductible
Unused contribution room
Carried forward
Carried forward
Growth
Tax-free3
Tax-deferred
Withdrawals
You’re not taxed on withdrawals
Funds that are withdrawn are charged a prescribed withholding tax at the time of withdrawal, but will be ultimately taxed as income at your marginal rate. This may affect government benefits such as old age security
Withdrawn amounts
Added to contribution room in the calendar year following the withdrawal.2
Withdrawn amounts do not get added to contribution room.

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Got questions? We have answers.

Yes, you can withdraw money from your RRSP anytime, as long as your funds are not in a locked-in plan. However, any withdrawals from your RRSP are subject to withholding taxes and will be added to your taxable income for the year, unless they are being made under the HBP or LLP. The amount of tax withheld can be between 10% and 30% depending on the amount withdrawn and your province of residence.

You can learn more in this article on RRSP contribution and withdrawal limits.

You need to close your RRSP accounts by December 31 of the year in which you turn 71. When you do, you must choose one of the following options for your RRSPs:

- Withdraw the funds. In this case, you’ll need to pay tax on the total amount.

- Transfer the funds to a Registered Retirement Income Fund (RRIF). This won't trigger any tax event, but you’ll need to start taking minimum payments (that'll be taxable), starting in the year after you open the RRIF account.

- Use the funds to purchase an annuity. No withholding tax is levied on funds used to buy an annuity, but annual income payments will be taxed.

You can learn more in this article on RRSP taxation. 

You are required to report your RRSP deduction claim on line 20800 of your income tax and benefits return. The RRSP receipts will be provided to you by your financial institution. You will need to attach the receipts to your income tax and benefits return in case you are filing paper return. However, if you are using EFILE or NETFILE, you don’t need to attach but save the receipts in case CRA asks for them.

No, you cannot directly transfer investments or funds from an RRSP to a TFSA or FHSA. Any transfer request from your RRSP is considered a withdrawal, which means it'll be taxable and must be included as income on your tax return. Hence, to move funds to a TFSA or FHSA from an RRSP, you will first have to withdraw those funds from your RRSP (which will be subject to withholding taxes), and then deposit it into the new account.

You can hold a variety of investments similar to those allowed in other self-directed registered accounts. These include:

  • Stocks
  • Mutual funds
  • Exchange-traded funds (ETFs)
  • Guaranteed Investment Certificates (GICs)
  • Bonds
  • Options

The first step is to open a new RRSP or spousal RRSP  with TD Direct Investing by completing the account application online. You can also request for the transfer of your RRSP during the account application. When you open a new TD Direct Investing account, you could be eligible for a reimbursement of account transfer fees of up to $150 when $25,000 or more in assets are transferred from another financial institution4.

 

To withdraw from your TD Direct Investing RRSP for the HBP, please follow these steps:

1. Complete the Home Buyers' Plan form.

2. Provide a signed Letter of Direction with instructions to confirm where the proceeds should be sent to. Choose from any of the following options:

  • To a TD Canada Trust bank account (as a deposit)
  • To your home address (by cheque)
  • To a bank account held at another Canadian financial institution (a void cheque is required for this deposit to be made)
  • To a TD Direct Investing non-registered account

3. Submit the HBP form and the signed Letter of Direction at a TD Canada Trust branch / TD Direct Investing Investor Centre.

Note: Please ensure you have sufficient cash available in the Canadian dollar component of the RSP. HBP withdrawals cannot be processed in-kind or in USD cash.

 

 

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  • Apply online

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