Group Registered Retirement Savings Plan (RRSP)

RRSP stands for Registered Retirement Savings Plan, a government-approved savings plan that helps Canadians save for retirement while reducing taxable income.

Both offer the same tax benefits, but a group RRSP typically has lower fees, the option of automatic payroll deductions, and may include employer-matching contributions.

The major difference between RRSPs and tax-free savings accounts (TFSAs) is how they shelter your money from tax. RRSP contributions are tax deductible, meaning they reduce the amount of money you pay taxes on. This doesn’t happen for the money you put in your TFSA. Withdrawals from your RRSP are taxed at your applicable tax rate, while withdrawals from your TFSA aren't taxed at all.

Have you given us your banking information yet? If not, sign in to your online account to add your banking info before you begin the steps below.

1. Sign in to the Manulife Mobile app and choose your Group Retirement account.
2. Tap Actions at the bottom of your screen, then tap Lump Sum Contribution.
3. Confirm your identity with a one-time code, if asked.
4. Enter your contribution details and bank details then tap Next.  
5. Review your contribution request and tap Submit.
6. Save your confirmation number in case you want to ask us about this contribution later.

If you’d rather contribute using the secure member site, follow the steps under How do I … put money in my plan in our FAQs.

Contributions made after the annual deadline (usually early March) count toward the next tax year’s limit. You’ll still get tax benefits, but they’ll apply to the following year.  

Your unused contribution amount is the total of any contributions you could have made in the past but didn’t. It counts toward your available contribution room for the year ahead.

For example, if your available contribution room for a certain year is $10,000, but you only contribute $9,000, your unused contribution amount is $1,000. If the same thing happens the next year, your unused contribution amount becomes $2,000 (i.e. the total of the first year and the next).

Everyone has a lifetime buffer of $2,000. If you overcontribute to your RRSP, it means you’ve put in more than your deduction limit plus your unused contribution amount plus $2,000.

If you exceed your limit by $2,000 or less, you don’t have to do anything about it, but you can’t use the extra money to lower your taxable income.

If you exceed your limit by more than $2,000, you need to withdraw the excess, or you’ll be charged a 1% monthly penalty on it. The good news is that you won’t need to pay withholding tax on the money you take out as long as you do it within one year of going over your limit.

Most people find out they’ve overcontributed when they check their Notice of Assessment and see that their available contribution room is negative. For more information about your limits, check out What’s your RRSP contribution limit?

Yes. You can deduct the money you put into your RRSP from your taxable income, which may reduce the amount of tax you’ll need to pay when you file your return. When you contribute using automatic payroll deductions, you’ll get an immediate tax break from those contributions. Money in your RRSP will only be taxed when you take it out, which is usually in retirement when your tax bracket is lower. 

We issue a tax receipt for the total contributions you make to the plan. You’ll get two receipts for each tax year: one for contributions made between March and December, and another for the first 60 days of the calendar year that follows. Visit our tax receipts and slips page for more information.

An RRSP offers many investment options. Members of Manulife group plans can choose their own investment style and fund allocations for their RRSPs. Sign in to the app or the secure member site to see the funds available to you.

Employer matching means that your company matches whatever you contribute to your RRSP. It’s essentially free money that helps your savings grow faster. 

It might. If you’re the higher earner, contributing to a spousal or common-law partner RRSP can give you a tax break now, as well as when the money is paid out. Check your plan booklet to find out if adding a spousal RRSP is an option for you.

Depending on the plan rules, withdrawals may be allowed and subject to taxes. Withdrawals under government-approved programs such as the Home Buyers’ Plan or the Lifelong Learning Plan aren't subject to withholding tax.

The short answer is, usually. Some plan sponsors restrict RRSP withdrawals but usually allow exceptions for the Home Buyers’ Plan and Lifelong Learning Plan. Check your plan booklet for details.

When you leave your workplace program, your group RRSP money leaves with you. Most plans allow you to:

• Move your money to a group plan on your own, like the Manulife Personal Plan^TM
• Move your money to a new group retirement plan if you have one
• Move your money to an individual retirement plan
• Take your money out by cheque or direct deposit

See your plan booklet for details.

Nothing needs to happen to the money in your RRSP when you retire. If you have contribution room available, you can keep contributing to your RRSP until December 31 of the year you turn 71. At that point, you’ll have to transfer your money out of your RRSP and into a retirement income plan so you can start using your savings as income.