Buying RRSPs can provide you with great tax savings in that they can be deducted to reduce your taxable income, and they can also be non-taxable when withdrawn if the amount is paid back in full over the time permitted for the repayment of the withdrawal. There are two types of RRSPs withdraw plans that this applies to: the Home Buyer’s Plan (HBP) and the Lifelong Learning Plan (LLP). First of all, it’s good to know that your deduction limit on your yearly contribution to RRSP is not affected by a withdrawal from your RRSP. For 2019, the contribution limit is…
