Q&A: RRSPs Before 18

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A reader’s granddaughter wants to open a plan of her own but the bank says no

Q – My granddaughter is 17 and would like to open an RRSP. I have asked at financial institutions and private investment firms and have been told at both places that an RRSP can not be set up for someone under 18. Where/how can an RRSP be set up for a child who is too young for a TFSA? – Terry B.

A – Under federal law, anyone with earned income can open an RRSP, regardless of age. Even a baby who earns money from, for example, a TV commercial can have one set up on her behalf by the parents. It may be that the financial institutions you spoke to have an internal policy prohibiting RRSPs for minors but there is certainly no law against it. I suggest you make inquiries elsewhere. – G.P.



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