Registered Retirement Savings Plan (RRSP)

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A Registered Retirement Savings Plan (RRSP) is a type of Canadian account for holding savings and investment assets. RRSPs provide tax advantages that encourage saving for your retirement.

Types of RRSPs:

Individual RRSP
This plan is associated with a single person, the account holder. This person is also known as the only contributor to fund their RRSP account.

Spousal RRSP
This plan may be beneficial for you if you and your spouse earn different levels of income.

This plan allows the higher income earner to contribute to the spouses RRSP account. The spouse can then withdraw funds after the holding period, however they are still responsible for taxes at their marginal tax rate. The spousal RRSP account allows the splitting of income at retirement to reduce the marginal tax rate of each spouse.

Group RRSP
This plan is arranged by the employer to automatically contribute into an employee’s RRSP account by deducting a certain amount accordingly from every pay cheque. The amount can be decided by the employee and the amount that comes from the employer will be deducted accordingly.

Pooled RRSP
This plan is designed for employees and employers in small businesses and for self-employed individuals.

> To learn more details about RRSPs, contact a Torce Financial representative.