Contributing to Your RRSP and What Happens When You Withdraw (Part 2)

Understanding how to put money into your Registered Retirement Savings Plan (RRSP) and

when you can take it out is key.

Contributing to Your RRSP: You can contribute to your own RRSP, and even your spouse or

common-law partner can contribute to an RRSP in your name. These contributions are usually deductible, which can help lower your taxable income. The CRA has specific rules about how much you can contribute each year, so it's good to keep track of your "RRSP deduction limit."

Making Withdrawals: Life happens, and sometimes you might need to withdraw money from

your RRSP. It's important to know that when you take money out, it's generally considered

taxable income in the year you receive it. There are specific tax rules around withdrawals, so it's good to be aware of them.

Other Important Points: The CRA also provides information on transferring funds between

plans, what happens to an RRSP when the annuitant (the person who owns it) passes away, and rules designed to prevent aggressive tax planning.

Source: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/registered-retirement-savings-plan-rrsp.html