Registered Retirement Saving Plan (RRSP)

A Registered Retirement Saving Plan (RRSP) is for anyone up to age 71 who are earning taxable income and want to save for retirement. RRSP is registered with Canada Revenue Agency. You, your spouse or common-law partner can contribute to RRSP. The income you earn from RRSP is tax exempt as long as funds remain in the plan. In addition, the interest you earn from RRSP is also tax free. Although, whenyou receive payments from the plan, you have to pay tax.

How much can you contribute to RRSP?

This is determined by your RRSP deduction limit. The amount of RRSP contributions is based on the amount you can deduct on your tax return for a year. This is available in your most recent Notice of Assessment.

When can you start contributing to RRSP?

You can start to contribute the year after you have your first ‘earned income.’

If you are willing to contribute to RRSP, but not in a financial position to do so, GT Brokers is here to help. Our financial advisor will guide to take a RRSP loan from us. With the RRSP loan, there are atomatic deductions. This ensures that you will save as much as you can afford.

When should you stop contributing to RRSP?

You can contribute to RRSP up until December 31st of the year you turn 71 years old.

Can you take money out of RRSP?

Yes, you can take out money, but you have to pay withholding tax for the amount taken.

If you still have doubts or reservations, please don’t hesitate to call us. We will guide and help start an RRSP for you. GT Brokers is just for you.