RRSPs and Other Retirement Accounts
Can I open a Registered Retirement Savings Plan (RRSP) and other retirement accounts (LRSP/LIRA/RRIF/LRIF/LIFs) with Polaris?
Yes, Polaris supports all types of Registered Retirement Savings Plan accounts.
Can I open a Spousal Registered Retirement Savings Plan with Polaris?
Yes, Polaris supports Spousal Registered Retirement Savings Plan accounts.
How much can I contribute to my RRSP?
There is a maximum annual contribution limit for Registered Retirement Savings Plans (RRSPs) determined by the Government of Canada. The easiest way to determine your contribution room is to check your Notice of Assessment (NOA) from last year. This is provided by the Canadian Revenue Agency (CRA) following annual income tax filing. Unused contribution room from as early as 1991 can be carried forward and each RRSP holder is permitted to over-contribute up to $2,000 once, and only once, without penalty. Once a holder has over-contributed more than this amount, a penalty will be charged (calculated as 1% of the over-contribution amount).
Generally, you are allowed to contribute 18% of your earned income from the previous year, up to the maximum annual contribution limits. Your contribution room will be reduced by any company sponsored pension plan contributions (defined as PA, or short for pension adjustment, on your T4 slip. A PA represents the value of any pension benefits accruing from participation in a registered pension plan or deferred profit sharing plan).
How can I find how much contribution room I have in my RRSP?
The amount of contribution room is found on your Notice of Assessment (NOA) from last year. This is provided by the Canadian Revenue Agency (CRA) following client annual income tax filing.
You can request a copy of your Notice of Assessment (NOA) by calling the CRA at 1-800-267-6999 or logging into your MyCRA account.
Can I transfer an existing RRSP to Polaris?
Yes, you can transfer an existing Registered Retirement Savings Plan (RRSP); however all existing investments in the account will usually need to be sold prior to the transfer. Polaris typically only accepts cash transfers, not securities. You will also need to open the account with Polaris before the transfer is initiated.
Does it cost anything to transfer a RRSP from another financial institution?
Most financial institutions charge a transfer fee when a client moves their account to another institution. In most cases, this fee is approximately $125. However, our custodian (BBS Securities Inc.) will refund transfer fees for Polaris clients up to a maximum of $125 providing their account size is at least $25,000.
Are there tax implications when transferring a RRSP?
No, assuming there are no withdraws from the Registered Retirement Savings Plan (RRSP) as part of the transfer, a taxable event will not be triggered.
Will I have to pay tax on my RRSP investment returns?
You are only subject to taxes when you withdraw money from your Registered Retirement Savings Plan (RRSP).