RRSP Rules & Strategies

piano caribbean, reggae k-pop, arabic pop · 3:29

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Lyrics

[Verse 1]
Eighteen percent or pension adjusted maximum
That's your contribution ceiling every year
Carry forward unused room from years behind you
Seven years of space accumulates here
Earned income drives the calculation engine
Employment, business, rental profits count
But investment gains and pension income
Won't boost your registered account

[Chorus]
RRSP rhythm, build your nest
Eighteen percent but not more than the test
Deduct today, defer the tax
Compound the gains, compound the facts
RRSP rhythm, retire blessed
Contribution room, put it to the test

[Verse 2]
December thirty-first, the deadline passes
Sixty days more to make your play
March first arrives, the window closes
Miss the chance, it fades away
Over-contribute, one percent monthly
Penalty bites your excess cash
Withdraw the surplus, claim the refund
Before the CRA comes to clash

[Chorus]
RRSP rhythm, build your nest
Eighteen percent but not more than the test
Deduct today, defer the tax
Compound the gains, compound the facts
RRSP rhythm, retire blessed
Contribution room, put it to the test

[Verse 3]
Spousal plans split income streams
Lower bracket, future schemes
Home Buyers' Plan, twenty-five grand
First-time purchase, repay as planned
Lifelong Learning, education goals
Twenty thousand for student roles
Fifteen years to pay it back
Stay on schedule, stay on track

[Bridge]
Seventy-one, conversion time
RRIF or annuity, make it rhyme
Minimum withdrawals, tax each year
No more contributions, end is here

[Chorus]
RRSP rhythm, build your nest
Eighteen percent but not more than the test
Deduct today, defer the tax
Compound the gains, compound the facts
RRSP rhythm, retire blessed
Contribution room, served you best

[Outro]
Attribution rules when spouses play
Three year rule keeps tax at bay
Withholding tax on early draws
Plan your retirement, know the laws

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