What is an RRSP?

An RRSP is a tax-advantaged investment account designed to help Canadians save for retirement. Contributions reduce your taxable income in the year they are made, and your investments grow tax-free until withdrawal.

2025 Contribution Details

2025 Contribution Limits

Annual Maximum
$32,490
Income Percentage
18% of earned income
Carry-Forward
Unlimited

2025 Key Dates

Contribution Deadline

  • March 3, 2025 (for 2024 tax year)
  • March 2, 2026 (for 2025 tax year)
  • Age 71 mandatory conversion deadline
  • December 31 of year you turn 71

Tax Filing Deadlines

  • April 30, 2025 (regular tax filers)
  • June 15, 2025 (self-employed)
  • All taxes owed due by April 30, 2025
  • Claim RRSP contributions on 2024 tax return

Investment Options & Special Programs

Investment Options

  • Stocks & ETFs
  • Mutual Funds
  • Bonds & GICs
  • Cash Savings

Special Programs

  • Home Buyers' Plan (up to $60,000) – see also FHSA
  • Lifelong Learning Plan (up to $20,000)
  • Spousal RRSP options
  • RRIF conversion at 71

2025 Home Buyers' Plan Updates

  • Maximum withdrawal increased to $60,000 per individual
  • Couples can withdraw up to $120,000 combined
  • Extended repayment relief for withdrawals between 2022-2025
  • Repayment starts 5 years after withdrawal (instead of 2 years)
  • Total repayment period remains 15 years

Withdrawal Rules

Withholding Tax Rates (2025)

Up to $5,000
10%
$5,001 - $15,000
20%
Over $15,000
30%

*Québec residents are subject to provincial withholding tax as well.

Maximizing Your RRSP in 2025

Best Practices

  • Set up automatic contributions
  • Use RRSP loans strategically
  • Reinvest your tax refund
  • Consider spousal contributions

Age 71 Options

  • Convert to RRIF
  • Purchase annuities
  • Required minimum withdrawals
  • Tax-efficient planning

Need Help with Your RRSP Strategy?

At Altiora Wealth Management, we help individuals and families in Fredericton, New Brunswick, and across Atlantic Canada build personalized retirement plans. Our experts can guide you through the 2025 RRSP rules and opportunities to help you maximize your retirement savings.

Schedule a Consultation

See Also