Registered Retirement Savings Plan
A Registered Retirement Savings Plan is a retirement savings vehicle that you can contribute to as a way of reducing income tax. While saving for retirement
Usually, income earned in an RRSP is exempt from tax as long as the income remains in the plan. Tax is deducted when funds are withdrawn.
What are typical contributions to a RRSP? Are there contribution limits?
- Your contribution is determined by your RRSP deduction limit. This calculation is based on income earned in the previous year.
Are there any withdrawal restrictions?
- Any withdrawals are taxed as income unless it is used in the Home Buyer’s Plan, Lifelong Learning Plan or is transferred to another registered savings vehicle.
Call us today to learn more about the Home Buyer’s Plan, Lifelong Learning Plan and any other tax advantages incorporated in an RRSP.