RRSP - Registered Retirement Savings Plan
Author:
Kevin Slater
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A tax-deferred savings account that can help Canadians prepare for retirement.
- A RRSP savings plan for Canadian residents age 18 to 71.
- Pre-tax money is used for investment deposit
- Investments grow tax free until withdrawal, at which time it is taxed at your marginal rate.
- Annual RRSP contribution room is created based on 18% of your annual earned income up to a maximum of $26,500 as of 2019.
- Unused RRSP room is carried forward and can be used in future years if not used.
- All RRSP funds must be transferred to a RRIF end of year you turn age 71 or the entire amount will be taxable at your marginal tax rate.
- A variety of investment options are available for your RRIF account.
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