RRSP: Registered Retirement Savings Plan
Registered Retirement Savings Plan (RRSP) helps you save for the future, while enjoying tax benefits now. By contributing to your RRSP, you can lower your annual income tax and defer paying taxes until retirement.
Investing for retirement and your long-term future, while enjoying a short-term tax break.
Benefits of RRSP:
Contributions are tax deductible – Your income is reduced by the amount you contribute to the RRSP and your income tax liability is reduced accordingly based up on your income-tax range.
Savings grow tax free – The income you earn in the RRSP is exempt from income tax as long as the funds remain in the plan. You have to pay tax on the amount you withdraw from the plan as the amount withdrawn is added into your income of that year.
Borrow from your RRSP – Funds can be withdrawn tax free under Home Buyers’ Plan and Lifelong Learning Plan.
Convert your RRSP to get regular payments when you retire – You can transfer your RRSP savings tax free into a RRIF or an annuity when you retire. You’ll pay tax on the regular payments you receive each year but if you’re in a lower tax bracket in retirement, you’ll pay less tax.
Spousal RRSP – If you earn more money than your spouse, you can help build their tax-free savings by contributing to a spousal RRSP. Retirement income will then be split more equally between the 2 of you which may reduce the total amount of tax you pay.
Give us a call at (+1) 416 991 5959 or fill the form to get a free quote or book a free and confidential appointment to get more detailed information about RRSP and its benefits. You’ve got nothing to lose and potentially thousands of dollars to gain. Your future is definitely worth it!