Registered Retirement Savings Plan (RRSP)
A Registered Retirement Savings Plan (RRSP) is a retirement savings and investing vehicle for employees and the self-employed in Canada. Pre-tax money is placed into an RRSP and grows tax-free until withdrawal, at which time it is taxed at the marginal rate.
With an RRSP, you will save for retirement while saving on your taxes every year in which you make contributions. According to Statistics Canada, for households in higher tax brackets (higher incomes), an RRSP would be more profitable than a TFSA and should be maximized first.
Because your situation is unique, our financial security advisors can help you determine your needs and help you find the best solution for your situation
Benefits of an RRSP
- Grow your savings tax-free: your contributions and the earnings they generate are not taxed as long as they stay in the RRSP.
- Contributions are deducted in full from your taxable income, which entitles you to tax refunds.
- The sums accumulated can be used for retirement, but also to buy or build a home, thanks to the Home Buyers' Plan, or to pay for your education if you go back to school thanks to the Lifelong Learning Plan
Contribution Limit
Your right to make an RRSP contribution for one year depends on your earned income for the previous year. For 2020, your contribution will be limited to 18% of your 2019 earned income, to a maximum of $27,230 plus any carry-forward contribution room that you may have
Constribution age Limit
December 31 of the year you turn 71 years old is the last day that you can contribute to your RRSPs