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David Reekie: Unusual RRSP Facts That You Should Know

posted by My Saskatoon    |   February 12, 2016 17:09

 

 

                                                                                

 Here's what you probably already know about RRSPs: You regularly contribute to RRSP-eligible investments, the contributions are tax-deductible and the RRSP is tax-sheltered until you make withdrawals in retirement and you enjoy the considerable benefits of compound growth over the longer term of your time in the plan.

 

Here are a couple RRSP facts that you may not know- but knowing them will help you get the most from your RRSP-eligible investments:


The Home Buyer's Plan allows you to borrow from investments held in your RRSP for the purchase of your first home. You and your spouse can each borrow up to $25,000 if you are considered first-time home buyers and you must repay investments held in your RRSP over the next fifteen years or you'll pay tax on any amounts not repaid.

The Lifelong Learning Plan allows you to use funds held within your RRSP to pay for training or education. If you qualify, you can withdraw up to $10,000 in a calendar year with the total withdrawal amount capped at $20,000 over a maximum of four consecutive years. You must repay within ten years to avoid tax penalties. 

 

 

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