CWB Canadian Western Financial

Registered retirement savings plan

Start early so you don't have to worry.

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    A registered investment provides tax benefits while also helping you save and reach your retirement goals.

 

    A registered retirement savings plan (RRSP) is a personal savings plan registered with the Government of Canada. It’s a smart and secure way to plan for your future needs, today.

An RRSP allows you to:

  • Save for retirement in a tax sheltered way.
  • Deduct your contribution amounts from your annual taxable income amount, reducing your annual tax bill.
  • Potentially grow your money faster. 
  • Use the funds for a first time Home Buyers’ Plan or a Lifelong Learning Plan in addition to retirement savings.
  • Your contribution limit can be found on your T1 Notice of Assessment.
  • You will receive a tax benefit for the amounts contributed to your RRSP plan.
  • The contribution deadline for the previous tax year is the first Monday of March in the current calendar year, but contributions can be made all year long.
  • You can contribute as little or as much as you like, as long as you are within your contribution limit for the year.
  • Individual RRSP:  Your own plan to which you make the contributions and receive the tax benefits.  The RRSP plan owner is both annuitant (owner) and contributor. 
  • Spousal RRSP: Your spouse contributes for you and receives the tax benefit, allowing for income splitting.
  • Locked-in RRSP (LRSP) or locked-in retirement account (LIRA): These are registered savings plans created by the transfer of a pension plan. Funds within the plan are made up of employee contributions to the plan, employer contributions to the plan or a combination of both.  Funds cannot be withdrawn until retirement or specified age.
  • The funds must be withdrawn when you retire or by the end of the year in which you turn 71.
  • Taxes are taken at the time of withdrawal when you will most likely be in a lower tax bracket.
  • An RRSP can also be used for the first time Home Buyers’ Plan or Lifelong Learning Plan.