EP070 RRSP Withdrawal Programs – What Are They & How Do They Work?
It can be challenging to prepare and find effective ways of planning for your future. In particular, people find it hard to plan for buying their first home or re-starting their education at a later time. Young adults may understand that starting early to plan their financial future is critical, but it is also vital to understand the financial planning options and programs that are available to Canadians.
Today, I’m sharing a short, targeted program on RRSP withdrawal programs. I reveal what a Registered Retirement Saving Plan is, how they work, and explain how an RRSP is established with the Canada Revenue Agency, by you, your spouse, or your common-law partner. I share how you can withdraw funds from a RRSP to build or buy a qualified home through a program known as a Home Buyers’ Plan (HBP). I also share how the Lifelong Learning Plan (LLP) can be used to fund your education or retraining.
“If home ownership is a goal, then you should get your RRSP started as early as possible.” – Tracey Bissett
This Week on Young Money:
- A recap of what an RRSP is and how it works.
- A refresher of what a TFSA is and how it works.
- The requirements and eligibility for participating in the Home Buyers’ Plan.
- How to find more details about re-qualifying as a first-time home buyer.
- What happens if you haven’t built or bought a home within the specified period.
- When HBP repayments begin and the option and benefits of beginning payments early.
- Why it is crucial to start contributing to an RRSP as young as possible.
- How the Lifelong Learning Plan can finance your education and the eligibility criteria.
- The amount that can be withdrawn from an LLP and repayment terms.
- The important dates for an RRSP, HBP, and LLP in 2019.
Resources Mentioned:
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