RRSP -Registered Retirement Savings Plan
A registered retirement savings plan (RRSP) is a personal savings account, registered with the federal government, for your retirement on a tax-sheltered basis meaning that any income generated from the various types of investment in that account is tax-deferred until you take the money out from that account which then will be taxed per withholding tax rate. The contributions to an RRSP account are tax-deductible which means you have more income available for your needs while you are saving for your retirement.
Any person, over age 18 who has paid income tax return in Canada will be eligible to contribute (per his/her contribution limit) to an RRSP until December 31 of the year he/she turns 71. One can contribute either 18% of his/her earned income in the previous year or the maximum contribution amount of 27,230 (for tax year 2020) whichever is lower.
Types of RRSPs:
Some of the major benefits of an RRSP savings account are:
Due to the great variety of conditions and facilities in preparing and using any kinds of insurance, it is recommended that you consult with one of our insurance advisors before making any decision. Our expert team at Forever Insure is always ready to provide the right consultation to you and thus help you make the right choice.
For more information, please contact one of our advisors at Forever Insure for a free consultation.