WINNIPEG -- The deadline to file your registered retirement savings plan (RRSP) is coming up on Monday, March 2.

According to Ken Nolin, from Nolin & Associates IG Private Wealth Management, RRSPs are for anyone looking to save money for retirement but don’t want to solely rely on a pension or a defined benefit plan.

“It’s an excellent way to defer tax but also defer some income to that time when you’re going to need it,” he said.

The government allows Canadians to take the first 60 days of the year to make RRSP contributions for the previous, current or following year. But Nolin advised there is a tax implication for taking money out of an RRSP.

“Typically RRSPs can come out. If you withdraw up to $5,000 in any given year you’ll have to have a withholding tax rate of about 10 per cent and then between $5,000 and $15,000 a year it increases to 20 and then over $15,000 is 30 per cent,” he said noting that most people‘s marginal tax rates are actually much higher.


When it comes to an RRSP compared to a tax-free savings account (TFSA) Nolin said there is a difference. RRSPs are for long-term accumulation, while TFSAs can be for the same, but are also for short-term items, like cottages, motor homes or education.

“There’s no tax implication to taking money out of a TFSA, as there is with an RRSP, so you’ll make lump-sum purchases more often using that type of vehicle,” he said.

Nolin’s top five tips for filing RRSP’s are:

  1. Maximize your contribution;
  2. Contribute early and regularly;
  3. Make use of spousal RRSPs if applicable;
  4. Make tax-efficient deduction decisions; and
  5. Be familiar with special RRSP deductions.

- With files from CTV’s Rahim Ladhani.