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FAQs: Tangerine RSP

 

What is an RSP and what does Tangerine offer?


An RSP (Retirement Savings Plan), also called an RRSP, is a federally registered tax-deferral plan designed to encourage Canadians to save for their retirement. Funds and interest or other earnings are tax-sheltered for as long as they stay in the plan.

Tangerine provides RSP Savings Accounts, and RSP GICs and RSP Investment Funds. Investment Funds are offered by Tangerine Investment Funds Limited, a wholly-owned subsidiary of Tangerine Bank.

You can get more information on our RSPs here.

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What are the withholding taxes for an RSP withdrawal?


Withdrawals from your RSP are treated as taxable income for that year and are be subject to a withholding tax, which range as follows:

Withdrawal amounts
$0 - $5,000
$5,001 - $15,000
$15,001 +
  Outside Quebec
10%
20%
30%
  Quebec
21%
26%
31%

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What is the deadline for RSP contributions?


March 1, 2017 is the deadline for contributing to your RSP for the 2016 calendar year.

In any given year, RSP contributions that are made within the first 60 days of the calendar year can be deducted on the previous year's tax filing.

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Can I choose to have more than the designated tax withheld when making a RSP withdrawal?


Yes, you can elect to have more than the designated amount of withholding tax kept back when making an RSP withdrawal. For example, an Ontario resident making a withdrawal of $4,000 could choose to have 20% withdrawn instead of the 10% required by the Canada Revenue Agency (CRA).

Interest earned is also subject to withholding taxes if transferred outside of an RSP product.

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When does the CRA decline to register an RSP?


Generally, the CRA will not register an application:

  • If the applicant is over the age of 71;

  • If the applicant doesn't have a valid Social Insurance Number;

  • If the date of birth provided for the applicant doesn't match what the CRA has on file;

  • If the applicant is not a Canadian taxpayer; or

  • If the applicant doesn't have contribution room available for further contributions, with certain exceptions.


In these circumstances, we won't be able to open an RSP Account.

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What does the CRA do with applications?


The CRA reviews RSP applications against its criteria for registration of a plan, and registers those RSP applications that qualify for registration under the Income Tax Act (Canada). Upon registration, an RSP becomes an RRSP, a Registered Retirement Savings Plan. A Canadian taxpayer with an RRSP can then use RRSP deductions in his or her tax returns.

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How can I transfer my RSPs to Tangerine?


It's really easy to transfer your RSP funds to Tangerine. If you're already a Client with an Account, you can transfer your RSPs over to Tangerine by following these simple steps:

  1. Log in, if you aren't already logged in.

  2. Click your name near the top of the screen to get to ‘Profile & Settings’. Then click 'Forms'.

  3. Select 'Banking Forms' to transfer an RSP Savings Account or GIC.

  4. You'll find the RSP Direct Transfer Form near the bottom of the list. Click the 'View' button near the form name.

  5. Complete the form, indicating whether you'd like to transfer some or all of your funds. Then don't forget to click 'Submit'. You'll then be asked to provide your electronic signature.


If you don't have an Account with us, you'll need to open one. Once your Account is opened and activated, you can follow the above steps.

If you have any questions or would like to arrange the transfer over the phone, feel free to give us a call at 1-888-826-4374. We're here to help you 24/7.

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Are there any fees to transfer my RSP to another financial institution?


Your Tangerine RSP has no fees while you’re saving with us. If at some point you decide to transfer your funds to another financial institution, a $45 fee will apply.

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Where can I find the Financial Hardship Unlocking Forms?


These forms are available on the Financial Services Commission of Ontario website. They should be used if, due to hardship, you need to access money that is locked into a Tangerine RSP, as a result of having transferred funds from a locked-in plan with another financial institution. Please complete the applicable form, and mail it to Tangerine, 3389 Steeles Avenue East, Toronto, Ontario M2H 0A1.

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What is the Home Buyers Plan (T1036)?


The Home Buyers Plan (HBP) is designated for individuals who have not owned a home in any of the 5 calendar years preceding the withdrawal from a Tangerine RSP (RSP Savings Account, RSP GIC or RSP Investment Funds). Money withdrawn must be used to purchase or build a home and the Client must meet all Canada Revenue Agency (CRA) requirements for being a first-time home buyer.

The maximum withdrawal amount is $25,000. If the home is purchased with another individual, each person may withdraw up to $25,000 for the same house. Funds must have been in an RSP account for at least 90 days. The home must be purchased by October 1st of the following year. There is no withholding tax on the HBP.

Neither you nor your spouse (or common-law partner) can own the qualifying home more than 30 days before the RSP withdrawal. A T1036 form must be completed and sent to Tangerine.
View the English HBP Form.
View the French HBP Form.

HBP withdrawals take up to 5 business days to be electronically transferred to your external account.

You have up to 15 years to repay the HBP withdrawal back into an RSP. Generally 1/15 of the withdrawn amount is due per year. To use funds from a spousal RSP, the HBP form must be completed by the Annuitant (the plan holder) not the Contributor. In order to qualify for the Home Buyer Plan, you must purchase or build a home in Canada. Additional requirements exist. Please confirm the requirements with the Canada Revenue Agency.

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