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RRSP Eligibility

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When do I become eligible for membership?

Eligibility for Program Membership: You may join the OHHA retirement program at any time if you are an Ontario Standardbred industry participant.

Criteria for the OHHA Contribution to Your Account:

To qualify as an owner, driver or trainer you must make at least 12 Ontario racing starts in the previous calendar year, (multiple owners of a horse only qualify as per the percentage of the horse ownership).
As an assistant trainer you must provide a T4 slip or equivalent proof of employment from your trainer of record/employer who has met the eligibility criteria.
Caretakers must provide a T4 slip or equivalent proof of groom’s status from your trainer of record/employer who has met the eligibility criteria.
Breeders qualify as the owner or lessee of a broodmare with racing offspring who have accumulated 12 Ontario racing starts in the previous year or are the signing officer of a registered Ontario Sires Stake eligible stallion standing in Ontario and nominated to the OSS program.
If you cannot meet the qualifying standard of 12 starts in any given year, you should apply if you are close to meeting the criterion. Upon request of a member, OHHA will review each case on an individual basis to determine if the OHHA contribution will be made. However, even if you do not qualify for the OHHA contribution, you may still make your own contribution to the plan.
At the end of the year in which you turn 71, you are excluded from the Plan in accordance with the Income Tax Act (Canada).

Termination of Program Membership: The sole purpose of the program is to provide income for retirement. If you should terminate membership in the program within the first two years of joining, you will receive only your own contributions with accumulated income.

The withdrawal of any funds from the program will constitute a termination from the program. You must wait four calendar years and meet eligibility requirements before you may rejoin the plan as a new member. A second termination means that you are no longer permitted any future participation.

Only members who withdraw funds for a Home Buyer’s Plan or Lifelong Learning Plan are permitted uninterrupted participation in the plan.

Frequently Asked Questions

How much must I contribute?

You must contribute $100 at the time of enrollment and at each annual renewal of your OHHA/RRSP membership to be eligible for the OHHA contribution. If you do not contribute the $100 fee in a given year, you will not receive the up to $1,200* OHHA contribution. However, you will remain a current plan member and may make your own contribution to the plan, and you will be allowed to continue to participate in subsequent years.

How much will OHHA contribute on my behalf?

The OHHA contributions to the program will be made on your behalf after 24 months of enrollment. The first OHHA contribution will reflect two years of regular association contributions (maximum $2,400*). Contributions for the third and subsequent years will be the annual contribution of up to $1,200* Contributions to the members’ accounts by OHHA will be made on December 31st of each year.

*Subject to the size of enrollment and funds allotted to the OHHA retirement program.

May I increase my benefits by additional voluntary contributions?

Yes, you may make additional voluntary contributions for the purpose of increasing your retirement benefits. You must be sure that these additional contributions do not exceed the maximum amount permitted by the Income Tax Act (Canada). These contributions will not be matched by OHHA.

What are the income tax act (Canada) maximums?

The Income Tax Act (Canada) currently permits you to contribute up to the lesser of 18% of your previous year’s earned income, or the current year’s legislated maximum. The part of your RRSP deduction limit for 1991 and later years, which you do not use for those years, is called your “unused deduction room”. The unused deduction room may be carried forward and used in future years. If you belong to a registered pension plan, the amount you can contribute to your RRSP will be reduced by your Pension Adjustment for the previous year.

What happens if I over contributed to my RRSP?

The Income Tax Act (Canada) establishes a lifetime over contribution limit, which at the time of printing of this booklet is $2,000. The amount can be left in the plan and a deduction taken in some future year, or never. If never claimed it will be fully taxed on withdrawal. Excess contributions over this limit will be subject to a 1% per month tax until withdrawn.

What tax receipts do I receive?

You will be issued two income tax receipts in each calendar year: one in January covering program deposits from March to December, and one in March covering deposits made in the first sixty days of the year.