FAQ

You can learn more from our asked questions

Can I access my money before the maturity date?
Yes, you can withdraw from a segregated fund before the maturity date, however your guarantees will be affected. They will be proportionately reduced by any withdrawals or fees applicable to the withdrawal.
Can you use an RESP for an apprenticeship?
Yes, you can use an RESP for an apprenticeship. The list of eligible programs also includes apprenticeships in skilled trades such as electrical work, welding, plumbing and more.
What happens to an RESP if your child doesn’t go to school?
Here are some things you can do with your RESP if your child doesn’t go to school:
• Keep the RESP open in case your child chooses to enroll later.
• Transfer the RESP to another child.
• Transfer funds from the RESP in to a registered retirement savings plan (RRSP).
I need to apply for CESG and CLB?
• Yes, in order to receive the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB), you need to apply for them through your Registered Education Savings Plan (RESP) provider.
• When you open an RESP for your child, you will need to provide their Social Insurance Number (SIN) and fill out the necessary forms to apply for the grants. Once your application is processed and approved, the government will provide the grant funds directly to your RESP account.
• It’s important to note that there are certain eligibility requirements for both the CESG and CLB. For example, to be eligible for the CESG, the RESP beneficiary must be a Canadian resident with a valid SIN and under the age of 18. The amount of the grant will also depend on the contributions made to the RESP.
• For the CLB, the child must be born after December 31, 2003, and the family must be receiving certain government benefits, such as the National Child Benefit Supplement or the Guaranteed Income Supplement. The amount of the CLB will depend on the family’s income level and the eligibility requirements.
• So, to ensure that you receive the maximum amount of government grants for your child’s education, it’s important to apply for the CESG and CLB as soon as possible and to make regular contributions to the RESP.
How does an RRSP help me save money on taxes?
RRSPs offer tax-deferred savings. This means you won’t have to pay tax on any investments you have within an RRSP until you start withdrawing funds.

As an example, let’s say you start withdrawing money from your RRSP after you retire at age 65. At this point in your life, you may be in a lower tax bracket. This means you’ll be paying less tax than you would if you with withdrew money from your RRSP in your 30s or 40s.
What is an income fund?
An income fund holds assets that generate specific returns, such as dividends and interest income. This cash flow is then distributed to investors at a specific rate.
What are managed solutions?
Managed solutions are the fastest-growing category of mutual fund, and often include multiple funds in a single portfolio. This allows the manager to diversify across multiple sectors to build portfolios reflecting an investor’s risk profile: from conservative (all fixed income) to aggressive (all equities).
Are returns from mutual funds guaranteed?
Unlike a product such as a guaranteed investment certificate, the returns on mutual funds are not guaranteed. Past performance is no guarantee of future performance and the value of a fund can rise or fall over time.
How does the RRSP Home Buyers’ Plan (HBP) work?
The HBP lets you and your spouse borrow up to $35,000 from each of your RRSPs to build or buy a home. You can do this as long as you or your spouse have not owned a home in the past 5 years. You must also repay the amounts borrowed to your RRSP within 15 years.
What happens when you withdraw money from an RRSP early?
Early withdrawals from RRSPs come with some major costs, including:

Loss of tax-sheltered compounding,*
facing withholding tax, and
permanent loss of contribution room.

*Compounding is what happens when your investment earnings or savings account interest is added to your original contribution.

But there are certain situations where early withdrawals from an RRSP may provide benefits. The government treats withdrawals to buy your first home (RRSP Home Buyers’ Plan) or finance your education (RRSP Lifelong Learning Plan) differently from other early RRSP withdrawals. Funds borrowed from the Home Buyers’ Plan and Lifelong Learning Plan are not taxable, as long as you repay the loan on time.
How does the RRSP Lifelong Learning Plan (LLP) work?
How does the RRSP Lifelong Learning Plan (LLP) work?
The LLP lets you withdraw up to $10,000 per calendar year for a 4-year period from your RRSP (to a maximum of $20,000). You can use this money to pay for the education of you or your spouse or your common-law partner (but not your child). You must also repay the full amount within 10 years.
How much can you contribute to an RRSP?
Canadians may contribute up to 18% of your previous year’s earned income to the maximum amount set each year by the Income Tax Act and Regulations, plus any unused contribution room carried forward from past years.

The Notice of Assessment that the Canada Revenue Agency (CRA) sends to you each year after processing your tax return shows your RRSP contribution limit. This will include any unused contribution room from previous years.
When do you have to close your RRSP?
By the end of the year you turn 71, you’re required by law to close down your RRSP. When this happens, you can choose to:

take your RRSP funds in cash,
purchase an annuity,
transfer your RRSP funds into a registered retirement income fund (RRIF), or some combination of the above.
What’s your TFSA contribution limit?
You can view your TFSA contribution limit on the notice of assessment given to you by the Canada Revenue Agency (CRA). The CRA provides you with this notice every year after processing your tax return.
Remember, your TFSA contribution limit is the total of three amounts:
6,000 (as of 2021);
anything withdrawn the previous year (with the exception of certain qualifying transfers and distributions);
and all unused contribution room from previous years.
Do you have to pay any income tax on withdrawals?
No, withdrawals are tax-free.
Do withdrawals affect your taxable income?
No. Since withdrawals aren’t taxable, you don’t have to report them as income.
What happens if you withdraw funds and later decide to put them back into your TFSA?
If you don’t have room, wait and put the money back in the next year.
What happens if you over-contribute to your TFSA?
If you contribute more than your limit, you’ll receive a 1% penalty for each month you are over the limit.
Find out how to fix a TFSA or RRSP over-contribution.

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