Q. Several years ago, I withdrew funds under the RRSP home buyer’s plan. I would like to make a regular RRSP contribution but have been told that I can’t contribute any new funds to my RRSP, until my home buyer’s plan is paid off. Is this information accurate?
Jeremy, Chelsea
A. Certainly you can make new contributions to your RRSP while an RRSP Home Buyer’s Plan withdrawal is outstanding. In fact the process is the same, you just stipulate on lines 245 and 246 on schedule 7 of your income tax return how the RRSP deposit is to be treated- either a new contribution or a repayment of the Home Buyer’s Plan.
This article provides general information and does not constitute financial or other professional advice. Seek independent advice before implementing any of the strategies discussed.
Imran Syed, BA CFP CFSB TEP is an independent, Fee Only Certified Financial Planner and can be reached at www.feebasedadvisor.ca. Please send any home related, financial planning questions to him by email at homes@ottawacitizen.com
