In Canada, an individual retirement savings plan similar to Individual Retirement Accounts in the U.S. Plans are established in accordance with the Canadian Income Tax Act. Their primary purpose is to provide income tax incentives to save money for retirement income in the case of those taxpayers whose access to a registered pension plan is either insufficient or nonexistent. RRSPs are issued by life insurance companies and trust companies.
A plan enabling Canadian citizens to establish tax-sheltered accounts to accumulate money toward retirement.----------[ Back
A savings arrangement available from most major financial institutions that accumulates contributions and investment earnings on a tax sheltered basis.
Investors below the age of 69 can contribute to this tax-deferred retirement plan in accordance with government-stipulated annual limits. RRSP contributions are tax deductible and can compound on a tax-free basis.
An investment plan which you register with the government so you can make tax-deductible contributions to accumulate (tax-deferred) retirement savings.
Tax-sheltered retirement plan for Canadian citizens, much like an American IRA.
A government-approved savings plan designed to encourage Canadians to save money for retirement. Contributions to an RRSP, along with the earnings they generate, are allowed to grow tax-free until the money is withdrawn.
A way of saving for retirement where contributions accumulate with investment income tax-free. Contributions to an RRSP are tax-deductible and income earned within the plan accumulates tax-free until it is withdrawn, when it is then taxed at regular rates. To calculate the tax savings your 2002 RRSP contribution will generate in each province and territory, please click here.
The amounts that accumulate in an RRSP are tax sheltered and are generally used to provide retirement income. The contributions paid into an RRSP are tax deductible, and the maximum contribution amount for the current year is established on the basis of the income earned in the previous year. Contributions may be paid into an RRSP until December 31 of the year in which the contributor turns 69.
Originally created to encourage Canadians to save for retirement, the RRSP is now considered an essential part of financial planning. It has two distinct advantages that no other retirement-savings vehicle offers. First, all contributions to an RRSP are tax deductible up to prescribed limits. Second, income in your RRSP grows tax-free until it is withdrawn. The holder invests money in a variety of investment vehicles which are held in trust under the plan. Income tax on contributions and earnings within the plan is deferred until the money is withdrawn at retirement. RRSPs can be transferred into Registered Retirement Income Funds.
A government-regulated plan that allows a taxpayer to save on a tax-deferred basis for retirement. Up to a specified limit, the amount of money contributed to an RRSP is tax deductible. Any income earned on funds within a plan accumulates tax free. The funds are fully taxable when withdrawn from the plan according to applicable rules by tax juridisction.
A vehicle available to individuals to defer tax on a specified amount of money to be used for retirement. The holder invests money in one or more of a variety of investment vehicles which are held in trust under the plan. Income tax is deferred until the money (the amount originally deposited plus any interest or dividends made on that money) is withdrawn at retirement. RRSPs can be converted into Registered Retirement Income Funds.
A plan registered with Revenue Canada that encourages Canadians to save for retirement by providing tax relief on contributions and earnings.
A formal investment plan which allows an individual to accumulate savings and earnings for retirement on a tax-sheltered basis.
A retirement plan for individual tax-sheltered savings.
A Federal Plan which allows a taxpayer to contribute approximately 18% of earned income - to a maximum of $13,500 into a retirement plan "tax free". If the taxpayer has already paid tax on personal income, then the RRSP contribution (which can be made until March 1st of the year following the year in which the income was earned and taxed) can result in a significant tax rebate. Since RRSP's can be caught up retroactively, this facility and the large cash refunds it can generate are central to numerous Realtor-driven programs designed to get first time buyers to take the plunge.
A policy in Canada that lets Canadian citizens create tax-sheltered accounts to accrue money for retirement.
A program created to help individuals save for retirement to save for retirement. In return for not being able to access this money while it is in the plan, contributions are tax deductible, meaning you can deduct money you put into the plan from your taxable income up to an annual contribution limit. Any profits you make from investing the money inside the RRSP are not taxable at the time providing you do not withdraw them from the fund prior to your retirement. RRSPs must be closed when the holder reaches 71, with the money transferred into an annuity that pays a monthly amount to the RRSP holder
A personal retirement savings account offered by financial institutions, to a specified amount. RRSP contributions can be d educted from an individual's taxable income. RRSPs are governed by the Income Tax Act.
a special type of savings plan registered with the government that allows you to reduce the income tax you pay on money you save for retirement
A government-approved plan through which you save money for your retirement years. Your contributions, within limits, are tax deductible, and the income earned is tax sheltered.
A tax-deferred retirement plan that allows individuals who have not reached the age of 71 to set aside sums of money, within limits. These sums are deductible from taxable income and can compound on a tax-free basis.
A savings plan introduced by the Federal Government to encourage Canadians to save money for retirement. The investment and the interest earned on the RRSP is sheltered meaning it will not be taxed as long as the funds remain in the plan.
A retirement savings plan to hold amounts deducted from taxable income, within certain limits, in a tax deferred state. There are various investment options and a tax deferral on investment income and gains. Available to individuals to and including 69 years of age, but must be collapsed by the end of the year in which the holder turns 69 years of age.
"RRSP" - An account established to provide income in a person's retirement years.
A savings plan introduced by the federal government to encourage Canadians to save money for retirement. The investment and the interest earned on it is sheltered: it will not be taxed as long as it is left in the plan.
A vehicle used for saving for retirement that shelters earnings from income tax. Within prescribed limits, contributions to an RRSP are tax-deductible. Contributions and income earned within the RRSP are tax-sheltered until they are withdrawn. Withdrawals from the RRSP, usually at retirement, are taxed at normal personal income tax rates. RRSPs must be collapsed at the end of the year in which the holder (annuitant) attains age 69 and can be converted to an annuity or a RRIF. (See also spousal RRSP)
The premier tax shelter available to Canadians. RRSPs allow an individual to save for retirement on a tax-deferred basis. Up to specified limits, amounts contributed to an RRSP are tax deductible, and income and gains realized in the plan accumulate free of tax until withdrawn, when they become taxable at the plan holder's marginal tax rate.
A Registered Retirement Savings Plan or RRSP is a Canadian investment account that provides some tax benefits for saving for retirement in Canada. RRSP refers to a provision in the Income Tax Act that allows a person to shelter financial property from taxes.