A registered retirement savings plan (RRSP) is a flexible, attractive savings tool. In addition to reducing your tax bill, it enables you to accumulate significant amounts and to defer income tax on your investment returns. The sooner you start saving, the more quickly your savings will start working for you.
Who Should Consider RRSP
- Any person under the age of 71 who has employment income.
Features and Advantages of RRSP
You deduct the amounts contributed from your taxable income.
You obtain an income tax deferral on your investment income.
Your protection against financial market fluctuations may attain and even exceed 100% of the capital invested.*
You can borrow to increase your contributions through the RRSP Loan to invest through the RRSP Plan.
You can protect your savings against potential creditors.*
You can invest by pre-authorized cheques.
Amounts withdrawn are taxed according to the tax tables in effect
Under the regulations, an RRSP must be converted to a registered retirement income fund (RRIF), or another retirement income instrument by December 31 of the year you turn 71.
* This applies to segregated funds only.