What taxes do I pay on an RRSP?

An RRSP is a tax-deferred account. This means your investments grow without being taxed while the money stays in the account. You only pay taxes when you take money out.
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Any amount you withdraw from an RRSP is treated as taxable income for that year. When you make a withdrawal, our custodian, CI Investments Services Inc., will automatically withhold a portion of the taxes owed. However, you must still report the full withdrawal as income on your tax return. Depending on your marginal tax rate, you may owe additional taxes—or receive a refund—when you file.
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There is a yearly limit on how much you can contribute to your RRSP. You can contribute up to 18% of your earned income, up to the annual maximum set by the government. If you exceed your contribution room by more than $2,000, penalties apply.

To check your available contribution room, refer to your Notice of Assessment from the previous tax year. The RRSP section will show exactly how much room you have.
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All required RRSP tax documents from Intelligent Investing are typically available by the end of March.

If you have questions about understanding your tax documents, feel free to reach out to us. For advice on filing your taxes or your personal tax situation, we recommend consulting a government resource or a licensed tax professional.