Retirement

RRSP

The RRSP (Registered Retirement Savings Plan) is designed to encourage individuals to save for retirement. To encourage taxpayers, governments offer three key benefits:

1. Contributions are 100% deductible from your taxable income.
2. The tax on the earnings in the plan is deferred until the time of withdrawal from the RRSP.
3. You decide when to make withdrawals.

RRSP features:

• Maximum RRSP contribution: check your Canada Revenue Agency notice of assessment;
• RRSP maturity at age 71: you must convert your RRSPs before December 31 of your 71st birthday;
• Upon death, certain (non-taxable) rollovers are possible;
• A wide range of investment products is available;
• You can contribute to a spousal RRSP and get the deduction;
• Unused contributions are carried over to subsequent years.