Pay with RRSPs

While we recommend paying for as much of your buyback as possible in cash, you can also pay for all or a portion of your buyback by RRSP. Here are a few things to keep in mind:

  1. There's no tax deduction for payments made by RRSP transfer.
    When you transfer funds from an RRSP to pay for a buyback, you are simply moving funds from one tax-sheltered registered retirement plan to another. Since it's a direct transfer, it's not eligible for a tax receipt or deduction.
  2. You cannot repay the transferred amount to your RRSP.
  3. Most financial institutions charge administrative fees for RRSP transfers.
    If the cost of your buyback isn't very high, an RRSP transfer might not be worth it at all.
  4. The processing time varies, but you can count on at least a couple of weeks.
    If you are near your buyback's deadline, you should ask your financial institution to expedite your request.

To transfer funds from your RRSP:

  1. Complete the T2033 Direct Transfer form with your financial institution.
  2. Have them mail the form with the transferred funds to:
    Ontario Teachers' Pension Plan
    5650 Yonge Street
    Toronto ON M2M 4H5