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Registered Retirement Savings Plan

A Registered Retirement Savings Plan helps you save tax-free until you retire. By investing in an RRSP, you can also generate a cash flow for your current needs through tax returns.

Benefits of an RRSP:

  • Contributions to an investment income are not taxed after they are withdrawn

  • Contributions are tax-deductible

  • Unused contribution room can be carried forward

Useful facts:

  • You can find your RRSP deduction limit on your latest notice of assessment from CRA

  • Your contributions reduce your RRSP deduction limit and are defined as your unused deduction room at the end of the preceding year plus the lesser of 18% of previously earned income or annual RRSP limit of the year, minus your (PA) pension adjustment

  • Generally, you can contribute to your RRSP until December 31st of the year you turn age 71 or when you have available RRSP deduction limit room

  • Generally, you have to pay a tax of 1% per month on your contributions that exceed your RRSP deduction limit by more than $2,000

  • You can claim a deduction for contributions you made to your RRSP, PRPP or SPP; contributions you made to your spousal RRSP, your unused RRSP contributions from a previous year

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