Regular plan administration fees apply. Contributions can be debited from a chequing account set up with any financial institution. A void cheque must be submitted. Savings accounts cannot be used for this plan. Contributions can be made on the first or third Friday of the month, or both, as instructed by the customer.
Funds are available for investment on the day the contribution is made.
Changes or cancellations to the plan can be made by requesting a change with a TD Waterhouse Representative at least 48 hours prior to the contribution withdrawal. The contributing spouse is usually the higher income earner. The object is to shift RSP assets into the hands of a lower income earner so that, at retirement, the income from the plan is taxed at a lower marginal rate, resulting in tax savings. Contributions can be made to the plan of a spouse, who is age 69 or younger, for the purpose of continuing to tax-shelter eligible income. The spouse is named as a spousal contributor to a plan set up in the name of the annuitant.