Registered Retirement Savings Plan (RRSP)
A Registered Retirement Savings Plan (RRSP) is a tax-sheltered savings account. In addition to reducing your tax bill, it enables you to accumulate significant amounts of savings while deferring income tax on your investment returns. The sooner you start saving, the longer your tax-deferred savings will have to generate compound returns.
Features & Advantages
- Contribute up to 18% of your earned income (subject to prescribed maximums)
- Contributions are tax-deductible
- Defer income taxes
- Potential for a lower rate of income tax on withdrawals in retirement
Contributions can be made to an RRSP up until December 31 in the year you turn 71. At that point your RRSP must be converted into a Registered Retirement Income Fund (RRIF) or used to purchase a Life Annuity.
To learn more about Registered Retirement Savings Plans, please contact us.
