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A Registered Retirement
Savings Plan is 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.You can
also have any number of plans.
It is important to start
investing money when you can most afford it - during your peak earning
years - to build up a comfortable retirement fund.
Whether you invest in
a Variable RRSP, where your interest rate varies with changing marketplace
conditions, or a Fixed Term RRSP, where you earn a fixed rate of
interest, with as little as $25 per month you can be well on your
way to a comfortable retirement. So please, for your future, speak
to any of our Financial Services Representatives to set you up with
a plan that suits your lifestyle.
| Withholding tax rates for RRSP/RRIF withdrawals* |
| Amount |
All provinces (except Quebec) |
| Up to $5,000 |
10% |
| $5,000.01 - $15,000 |
20% |
| $15,000.01 and above |
30% |
* There is no withholding tax on RRIF minimum
amounts.
The Home Buyers' Plan
The Home Buyers' Plan can be used by first-time home buyers. Each eligible RSP holder can withdraw, without immediate taxation, up to $20,000 to be used as part of a downpayment for a qualifying residence. Income tax will not be paid on any portion of the withdrawal repaid to an RRSP before or during the 15 year repayment period. For more information, click on the link to the right.
The Life Long Learning Plans
An individual may withdraw up to $10,000 per year from his or her RRSP, without immediate taxation, to finance full-time training or higher education of at least 3 months duration for the idnividual or the individual's spouse. For more information, click on the link to the right.
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