1. Why should I care about an RSP?

Savings is more than just keeping more of your own money. You have to figure out the best way to save. When you start an RSP, you build your savings through the money you deposit, the income you earn, and the tax savings you can attain each year. It can be the perfect long term savings plan, and it doesn’t have to affect the lifestyle you lead today.

2. Why should I start investing now?

The biggest asset that you have right at this moment is time. The sooner you start saving, the more time you have to make your money grow. That’s the great thing about RSPs. Remember, it’s not only about the amount of money you save, it’s about when you start saving.

3. How much can I contribute?

The Canada Revenue Agency issues a statement called a "Notice of Assessment", which indicates the maximum you can contribute to your RSP.

4. What if I don’t contribute the maximum?

If you don't contribute the maximum allowable to your RSP in any year, you can carry the unused portion forward indefinitely.

5. Can I withdraw money?

Although an RSP is more effective as a long-term investment, you can withdraw all or part of it at any time.* RSP withdrawals are subject to tax and the terms of the investment you chose. But the important part is that your money is available if you need it.

However, you can withdraw from your RSPs without incurring income tax for two reasons: buying a home and or going back to school.

* Please note that withdrawal restrictions apply to locked-in RSP plans.

6. How much can I take out to pay for my home/schooling?

The Home Buyers' Plan (HBP) lets you withdraw up to $25,000 from RSPs for a new home purchase. The amount you withdraw must be repaid within 15 years, subject to a minimum annual repayment that is 1/15 of the amount withdrawn.

If you’re going back to school, the Lifelong Learning Plan allows you to withdraw up to $20,000 from your RSP to pay for eligible training or education for you, your spouse or your common-law partner. Once you withdraw the funds, you get 10 years to repay the withdrawals.

7. How often do I have to contribute?

You can either contribute a lump sum or on a continuing basis. The one big advantage of continuous contributions is that you can set it and forget it with automated payments. The key is to start early and continue making contributions every year.

If you do decide to make a lump sum payment, it’s better to do it earlier in the tax year, rather than just before the deadline - as the earlier you start saving, the more tax-deferred income you can earn.

8. What types of investments/accounts are available for my RSP?

At TD Canada Trust, you have a wide variety of RSP investment options available including:

• TD Canada Trust RSP - Daily Interest Savings Account (DISA) and GICs
• TD Mutual Funds RSP
• TD Waterhouse Self-Directed RSP

Is one better than another? The best thing you can do is talk to a TD Canada Trust advisor and discuss the best option for you.

9. Why should I invest with TD Canada Trust?

When you work with TD Canada Trust, we’ll always help you:

• Figure out how much you can save comfortably
• Get you set up with an automated savings program
• Simplify the process and answer all of your questions

10. What if I have more questions?

If you can’t find what you are looking for online, then come in and talk to a TD Canada Trust advisor.