FAQs: Tangerine RSP

What is an RSP and what does Tangerine offer?

What are the withholding taxes for an RSP withdrawal?

What is the deadline for RSP contributions?

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

When does the CRA decline to register an RSP?

What does the CRA do with applications?

How can I transfer my RSPs to Tangerine?

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

Where can I find the Financial Hardship Unlocking Forms?


 

What is an RSP and what does Tangerine offer?

An RSP (Retirement Savings Plan) is a federally registered tax-deferral plan designed to encourage Canadians to save for their retirement. Funds and interest earned on investments are tax-sheltered as long as the earnings stay in the plan.

Tangerine provides both RSP Savings Accounts and RSP GICs across Canada, 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?

You can withdraw from your RSP at any time. However, these funds will become part of your taxable income for that year and will be subject to a withholding tax, which can range as follows:

Withdraw 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?

In order for your RSP contributions to be eligible for the previous year's tax filing, you must make your contributions within the first 60 days of the current year. The deadline for RSP contributions is March 1, 2017.

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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 For example, an Ontario resident making a withdrawal of $4,000 could choose to have 20% withdrawn instead of the 10% required by the Canada Revenue Agency (CRA).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 is not a Canadian taxpayer, or
  • If the applicant does not have any deduction room available for further contributions into an RRSP, with certain exceptions.

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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 are already a Client with an account, you can transfer your RSPs over to Tangerine by following these simple steps:

  1. Log in to your Account and click Transfer RSPs.
  2. Complete the simple transfer request form. You can transfer some or all of your funds. And you'll start earning our higher rates of interest the moment you click Submit.
  3. Print the completed form, sign it and mail it to us at the address below:
  4. Tangerine

    3389 Steeles Avenue East
    Toronto, Ontario
    M2H 0A1

If you do not have an Account with Tangerine, you will first have to set up a Tangerine RSP Savings Account . When your Account is opened and activated you can follow the step above by logging online to request a transfer of your RSPs. Remember, you'll be earning interest as soon as you sign up and even while the paperwork is still underway.

If you have any questions or would like to complete the process over the phone, feel free to give us a call at 1-888-826-4374. We are available 24/7 to help you.

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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)?


 

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 Mutual 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. 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 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 chequing account.

You have up to 15 years to repay the HBP back into an RSP. Generally 1/15 per year is due. 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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