Registered Retirement Savings Plan (RRSP)


A Registered Retirement Savings Plan (RRSP) is a government approved plan designed for Canadians to save money for their retirement.  What makes an RRSP benefical, is the special tax-treatment it receives.  

Your contributions to an RRSP, within limits, are tax deductible - saving you tax dollars today. Plus, any income you earn within an RRSP is tax sheltered until withdrawal.  Withdrawals are fully taxable - however, typically Canadians are in a lower tax bracket in their retirement years then they are when earning employment income - saving you tax dollars again!  Its a win-win-win scenario!

Anyone with "earned income" subject to Canadian taxation is eligible to contribute to an RRSP.  The maximum RSP contribution is 18% of your "earned income" subject to annual maximums. The annual maximum contirbution for the 2015 tax year is $24,930.  After 2015 this maximum will be indexed to inflation.  Information regarding your RSP contribution limits can be found on your notice of assessment. 
RRSPs are a great investment opportunity for many Canadians, we can provide the advice you need to decide if they are right for you.