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Archive for June 21, 2008
How long do you have to leave money in an RRSP re: Home Buyer’s Plan
June 21, 2008 by Dan White.
There are some important rules to follow in order to make the RRSP contributions work for the Home Buyer’s Plan. First, the RRSP contributions have to be made at least 90 days before being withdrawn for the HBP. Repayments must begin not later than 60 days after the end of the second year following the first withdrawal. Annual minimum payments would be $2,667, assuming that each makes the full $20,000 contribution to his RRSP. The sums in the RRSPs should be in money market funds or high-interest savings accounts or a short-term guaranteed investment certificate, to minimize risk.
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