Adjust Contribution from RRSPs
RRSP loans taken out to purchase RRSPs can be used to reduce the value of the RRSPs used in the student’s need assessment.
When adjusting the value of RRSPs to be used in the need assessment, the RRSPs purchased by the student/spouse and the outstanding RRSP loan must be valued as at the asset valuation date.
- letter of explanation from student; and
- Signed and dated statement from the student's/spouse’s financial institution/investment broker/investment company stating the amount of the RRSP loan outstanding as of the asset valuation date.
If a student/spouse reports the gross value of RRSPs withdrawn without taking into account the tax implications/hold-back for the withdrawal, the value of the RRSPs used in the need assessment can be reduced by the amount of tax the student/spouse would be required to pay for withdrawing the RRSPs.
- Signed and dated statement from the student's/spouse’s financial institution/investment broker/investment company indicating the value of the RRSP after taxes have been deducted.
Students and their spouses, if any, are not required to report amounts in locked-in retirement savings accounts as an RRSP on their OSAP application if they do not have access to the funding in the accounts.