Tax season is coming and you’ve been putting money in your RSP to save for retirement. But did you know you can also use your RSP to help buy your home or pay for your education? Kim Parlee discusses how you can use your RSP for more than just retirement.
You can withdraw up to $25,000 tax free to put towards the down payment if you're a first-time home buyer. And even if you've owned a home before, that doesn't necessarily disqualify you. But you will have to pay back the money to your RSP within 15 years. For school, you can withdraw up to $20,000 tax free for you or your spouse to pay for a full-time post-secondary program.
And you'll have up to 10 years to repay the amount. But before you take any money out, make sure you know all the rules and talk with a financial professional to make the most out of your RSP. I'm Kim Parlee, and that's your Money Talk Minute.