How Many RRSP Accounts Can I Have?

The great news is that you can have as many Registered Retirement Savings Plan (RRSP) accounts as you’d like. However, there’s a limit to the total amount of money you can deposit across all of your accounts.

You can only deposit to an RRSP if you have contribution room available. Each year that you earn income and file your taxes, you receive RRSP contribution room equal to 18% of your income. For instance, if your income is $50,000, you gain $9,000 in RRSP contribution room that you can deposit to any of your RRSP accounts.

Contribution room that you earn each year adds up and carries forward. You can find out how much contribution room you have available by signing into your My Account with the Canada Revenue Agency (CRA) or by looking at your latest tax confirmation slip from CRA, called a Notice of Assessment (NOA).

Pros and cons of additional RRSP accounts

Now that we’ve confirmed you can have as many RRSP accounts as you’d like, let’s look at the pros and cons for having more than one.

Pros of having multiple RRSP accounts

1. More investment options

   • There are lots of investments to choose from once you open an RRSP. In some cases, you may need to open a new account to increase your options. A shortlist of investment options includes:

     • Stocks.

     • Exchange-traded funds (ETFs) and mutual funds.

     • Guaranteed investment certificates (GICs), high-interest savings accounts and bonds.

2. No need to transfer accounts

   • If you want to have just one RRSP, then you’ll need to stay with a single company your whole life, or you’ll need to transfer your old account each time you open a new one. For some, moving an account can be time-consuming and confusing.

Cons of having multiple RRSP accounts

1. More difficult to manage

   • Managing accounts across multiple investment options and companies can make tracking your money difficult, especially at tax time. You’ll have more monthly statements and tax forms to track down to make sure you know how your investments are performing and what you need for taxes.

2. You may pay higher fees

   • If you leave old accounts open, you may be paying more in fees than you need to. If you used to have a relationship with a financial advisor or planner, you might still be paying their fees on your old accounts. Also, new investment options are introduced each year at lower costs, so transferring old accounts can help you keep more of your money.

Examples of when multiple RRSPs happen

You can have multiple RRSPs at the same company, perhaps to invest in different offerings. For example, in the following table, the individual has two RRSPs at Bank 1, one to invest in mutual funds and the other to invest in GICs.

You can also have an RRSP at multiple companies, perhaps because you’ve moved your business, or you’ve found an exclusive offering. For example, in the following table, the individual has an RRSP at Bank 2 in addition to their accounts at Bank 1.

Closing remarks

An important question to consider when opening a new RRSP account is whether you could benefit from a Tax-Free Savings Account (TFSA). Depending on your situation, a TFSA may help you lower your taxes even further and save more for retirement. We completed an in-depth comparison between the TFSA and RRSP for your retirement savings previously. In the end, the most important step for your financial success is to set money away for the future. Whether that’s easiest with one RRSP, five RRSPs or two RRSPs and one TFSA, find what works for you.