What is an RRSP? A Registered Retirement Savings Plan (RRSP) is a savings plan, registered with the Canadian federal government that you can contribute to for retirement purposes. When you contribute money to a RRSP, your funds are "tax-advantaged", meaning that they're exempt from being ...
A deferred profit sharing plan (DPSP) is a Canadian employer-sponsored profit-sharing plan intended to help employees save forretirement. The money in an employee’s DPSP account grows on atax-deferredbasis until it is withdrawn. Key Takeaways A deferred profit sharing plan (DPSP) is an emp...
For a government group, the Canadian Retirement Agency (CRA) is actually pretty forgiving if youcontribute too much to your RRSP— but only to a point. They start you with a nice bit of cushion: any amount up to $2,000 over your total accrued limit won’t be penalized (though it also...
A matured registered retirement savings plan (matured RRSP) is a Canadian retirement savings plan that is registered with the Canadian government, and which has entered the phase of being used to produce retirement income for the beneficiary. ARegistered Retirement Savings Plan(RRSP) is a defined-c...
What does an RRSP do? An RRSP can help you meet important financial goals. They provide a way for Canadian residents who pay income taxes in Canada to save for retirement and defer tax. In simpler terms, contributing to an RRSP can help you lower your current income tax. The amount you...
BoC’s overnight rate, also known as the policy rate, is one of the key elements that guides the prime rates for commercial banks. Each bank sets its own prime rate, but the Big Six Canadian banks— BMO, Scotiabank, CIBC, RBC, National Bank, and TD — usually have the same prime ra...
Many Canadian financial institutions offer high-interest savings accounts. Discover how this type of bank account can help boost your saving power » See our picks: Canada’s best high-interest savings accounts What is a high-interest savings account? Just like its name implies, a high-...
ARegistered Retirement Savings Plan(RRSP) is the analog of the American traditional IRA. In contrast to a TFSA, contributions to a RRSP are tax-deductible and withdrawals are taxable as regular income. In addition, the RRSP contributionscan't exceed 18 percent of your previous year's earned in...
Creating a spousal RRSP is actually very simple. First, you’ll need anbrokerage account. If you don’t have one already, you can open up an account quickly and easily. Once you have opened your own brokerage account, you can open an annuitant account, which will be held in the non or...
An RESP, short forRegistered Education Savings Plan, is a tax-free way to save money for post-secondary education, backed by the Canadian government. An RESP is a smart, safe way to save for future education plans. Starting early is best, but it'snever too late to start one up, even...