RRSP
Registered Retirement Savings Plans (RRSPs) are accounts specifically designed to help Canadians invest for retirement. See how investing with BMO can help you achieve your retirement dreams.
Invest in your RRSP up to the annual limit and watch it grow, tax-free- Fill it with a mix of investments, like GICs, stocks, mutual funds and savings accounts
- Get a tax break on any income you invest in your RRSP
Limited-time offer:
Get up to $3,800† when you transfer registered investments and start a savings habit in a BMO RRSP.
What is an RRSP?
A Registered Retirement Savings Plan (RRSP) is a great way to save for retirement. It offers two important tax benefits. Firstly, investment income in your RRSP isn’t taxed while in the plan, so it grows faster than it would otherwise. Secondly, contributions to your RRSP are tax deductible, so contributions can lower your taxable income and your income tax bill. It’s definitely a win-win way to invest for your future!
Why invest in an RRSP?
More growth, faster returns
With an RRSP, you won’t pay tax on any growth on investments while it’s in your account. That’s a big deal, because it can help you achieve your goals faster.
The right investment mix
You can mix things up by holding various investment types in an RRSP, including stocks, bonds, GICs, ETFs and mutual funds. That means you can create a custom portfolio to help you reach your goals.
Save on taxes
Get a tax deduction when you contribute to your RRSP -- any money you put in your RRSP will be subtracted from your income, so you’ll pay less in taxes.
Invest in a winner
From conservative to high‑growth strategies, BMO Mutual Funds offer choice, guidance, and proven expertise to support every investor.
Awarded Best Mutual Fund in Canada 2026 by MoneyGenius.
Reach your retirement goals faster
Discover how to achieve your retirement dreams with our simple RRSP calculator.
RRSPs by the numbers
18%:
The amount of your income you can invest in your RRSP each year.
$33,810:
The maximum RRSP contribution in 2026.
71:
The age you must close your RRSP or convert to an RRIF.
How to make the most of your RRSP
Here are a few ways to make sure your RRSP is working hard for you.
Start planning early
The secret to RRSP growth is to take advantage of it as soon as possible. The earlier you start contributing to your RRSP with a Continuous Savings Plan, the more time your money has to grow tax-free.
Max out contributions
We know that life happens and it’s not always easy to put a ton away for retirement. But making small, regular contributions can help you get closer to hitting that limit each year.
Did you know? You can maximize your RRSP contribution with an RRSP loan. Learn more.
Make up for missed contributions
If you fell short of your maximum contribution, it’s not too late. The room you have left will roll over into next year, so you have another shot at saving as much as you can.
Take advantage of our savings account rates
On top of everything else a RRIF/RRSP can do for you, here’s another great reason to start: Great rates and offers to help you make real financial progress right from the start. It’s easy to get started today.
How an RRSP helps you save more
Investing $10,000 annually in an RRSP could earn you 60% more in total savings over 30 years compared to a non-registered account (assuming a 6% average annual return).
Disclaimer: For illustrative purposes only. BMO does not guarantee an annual average rate of return. Assuming a 46% tax rate applied on the non-registered account investment.
Investments you can hold in your RRSP account
Guaranteed investment certificates protect your initial investment, so you’ll get that investment back at the end of the set term. Plus, you can count on a guaranteed rate of return, depending on the GIC you pick.
Pro tip: Market-linked GICs offer higher return potential than traditional Guaranteed Investment Certificates.
Ways to Invest:
- With a BMO professional
- Online with BMO Self-Directed and adviceDirect
Bonds are a fixed-income investment, meaning they provide a set interest payment on a regular schedule to investors allowing you to invest with a predictable return.
Ways to Invest:
- With a BMO professional
- Online with BMO Self-Directed and adviceDirect
We have a comprehensive selection of professionally managed mutual funds that can be a great fit in your account. Design the portfolio that works for your goals and how much risk you’re comfortable with.
Ways to Invest:
- With a BMO professional
- Online with BMO Self-Directed and adviceDirect
Exchange traded funds, like stocks, can be traded on financial exchanges. ETFs up of several assets, similar to a mutual fund– making them a diverse investment option.
Ways to Invest:
- With a BMO professional
- Online with BMO Self-Directed, adviceDirect and SmartFolio
Stocks – or equities as they’re also known - are shares of ownership in a company. These investments allow your money to grow as the company grows – either through stock price increases or shared earnings like dividends.
Ways to Invest:
- Online with BMO Self-Directed and adviceDirect
Enjoy a tax-efficient, guaranteed monthly cash flow to help you weather volatile markets and life’s uncertainties during your golden years.
Ways to Invest:
- With a BMO professional
- Online with BMO Self-Directed and adviceDirect
Learn more about investing in RRSPs with BMO
Compare: FHSA vs TFSA vs RRSP
Learn about the key differences between FHSAs, TFSAs and RRSPs.
When to use RRSPs, TFSAs and RESPs
Registered accounts may seem similar, but they serve different purposes. Read about how these accounts can benefit you most.
Getting started with saving for retirement
How to harness the power of SmartFolio for your retirement.
RRSP FAQs
General questions
When it’s time to enjoy all of your hard-earned investment, (or by the end of the year you turn 71 at the latest) you may convert your RRSP to a Registered Retirement Income Fund (RRIF). In case of an RRIF, Then you can withdraw as much as you like, as often as you like — as long as it meets the annual minimum withdrawal amounts. For more information on RRIFs, check out our RRIF FAQs.
You’ll have to pay tax on the money you withdraw from your RRSP. The exception is if you’re using the funds to buy your first house or go back to school. But you’ll still need to put that money back in your RRSP eventually.
Yes, you’ll have to pay tax on the money you withdraw from your RRIF, so that’s important to keep in mind during retirement planning. But once you’ve retired, that tax rate might be lower than it would’ve been when you were putting the money into your RRSP.
Both account types help Canadians save and invest with tax-deductible contributions, but there are some key differences.
The main purpose of an RRSP is to help Canadians save for retirement with tax deferred growth, as long as the money remains in the RRSP. An RRSP can also be used to make a down payment on a home through the Home Buyers’ Plan (HBP) or pay for post-secondary education through the Lifelong Learning Plan (LLP). Ultimately, the money in an RRSP must either be converted into a Registered Retirement Income Fund (RRIF), used to purchase an annuity, or cashed out by the end of the year you turn 71.
An FHSA, on the other hand, is exclusively designed to help save tax-free for a qualifying first home purchase. Like an RRSP, the FHSA must be closed out by age 71 at the latest.
Opening an RRSP
Anyone who is 71 or younger, has an income, and is a Canadian resident for tax purposes can open an RRSP.
- The steps to open an RRSP can differ depending on how you want to save or invest. If you’re a BMO customer, you can open an RRSP Savings Account in just minutes through your Online Banking.If you’re looking for advice from an investment professional, visit a branch or book an appointment today.
Yes. There is no limit on the number of RRSPs you may open, but the contribution limits and other rules will apply collectively to all of your RRSPs.
Contribution room
The RRSP contribution limit for 2026 is $33,810, or 18% of the income reported on your 2025 tax return — whichever is less. Any unused contribution room from previous years is also carried forward, so it could be more. You’ll find your current RRSP contribution limit on your last Notice of Assessment from the CRA, or by logging into My Account on the CRA website.
This is the amount you’ve contributed to your RRSP that you can report on your income taxes, reducing your taxable income in the tax year your contribution was made.
Sure you can! But depending on your situation you might want to avoid it. If you take money out of your RRSP before you retire, it’ll be subject to withholding tax, and counted as income for you in that year. There are exceptions though. You can borrow from your RRSP without penalty to finance your first home under the federal Home Buyers’ Plan, or to pay for full-time training or education as part of the Lifelong Learning Plan (LLP).
You can borrow up to $60,000 from your RRSP to put toward a down payment on a new home, or to fund building one, under the federal Home Buyers’ Plan (HBP). Your spouse or partner can withdraw up to the same amount, for a combined total of up to $120,000. You won’t have to pay tax on this loan as long as you pay it back in full within 15 years.
If you need to withdraw money from your RRSP before you retire (other than through the Home Buyers’ Plan or Lifelong Learning Plan), you’ll be charged a withholding tax. The rate of withholding tax depends on the amount you take out and the province you live in. The money you withdraw will be counted as income and will affect the income tax you pay for that year.
Don’t panic. If you’ve over-contributed to your RRSP by $2,000, there’s no penalty. You won’t get a tax break on over contributions, but you won’t be charged a penalty. Beyond that “cushion,” however, the penalty is 1% per month on the excess amount, which can add up fast.
Investment types
This depends on your financial goals, investing time horizon and level of risk tolerance. Each type of investment (mutual funds, GICs, ETFs, stocks, bonds, options, etc.) has its own features and risks, and determining which is best for you depends entirely on your individual needs.
No. Money in an RRSP is tax-deferred, meaning that it won’t be taxed as long as it remains in the RRSP. However, it is normally subject to tax if you withdraw from your RRSP.
No, there’s no tax on investment earnings while they’re in your RRSP. Funds are taxed when they come out of your RRSP or RRIF.
Ways to contact us
There are various ways to get in touch. Choose your preferred method.
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- This material is for informational purposes only. This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do not take into account the particular investment objectives, needs, restrictions and circumstances of a specific investor and, thus, should not be used as the basis of any specific investment recommendation. Investors should consult a financial advisor and/or tax information applicable to their specific situation.
- All investments, including these, are subject to risk, including the possible loss of principal.
- Investment professional refers to Personal Bankers, Financial Planners, Investment and Retirement Planning and Investment Specialists that are representatives of BMO Investments Inc.
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