Saving plan for the Group RRSP

Savings Plan for Retirement RRSPEl Retirement Savings Plan RRSP; Registered Retirement Saving Plan, is a plan created by the Government of Canada, designed to encourage Canadians to save for retirement by providing a reduction in their taxes to pay.

It does not matter if you are starting your working life or if you are reaching the age of retirement, it should be in your best interest to be updated with the benefits offered by the Retirement Savings Plan sponsored by the Government of Canada.


1) Once the RRSP account is established, the contributions or deposits are deductible from the income.

2) The investments and their growth within the Plan are tax free.

 In a nutshell, your money grows free of taxes. Those who have invested their savings or income in an unregistered plan, before the existence of the TFSA knows that you have to pay taxes for all money earned (whether generated by interest, dividends or capital).

 Remember that you can deduct from your income the contribution you make to your retirement plan (RRSP), which allows you to pay less taxes or receive a refund of the taxes you already paid, on the contrary if you withdraw money early from your plan it will be subject to “Penalties for early withdrawal of money from their RRSP”.

The Government of Canada allows you to borrow from your own contributions to your Group RRSP without penalties only through the First Time Buyers Plan (HBP) and the Lifelong Learning Plan / LPP throughout your life.

The Government of Canada establishes the maximum amount of contribution to the plan annually, for the year 2013 this figure is 18% of the income earned in the year, up to a maximum limit of $ 23 820.00.

This contribution is calculated each year by the “Canada Revenue Agency” when you file your tax return annually and you are notified through the “Notice of Assessment”.

 Important: If you do not use it, you can accumulate it indefinitely and use it to contribute at any time and thus take advantage of the tax savings when it is convenient, which may be perfectly, when your income is higher.

You can contribute up to $ 2000 over the limit calculated in your “Notice of Assessment” without being penalized, although you can not deduct this contribution from taxes.


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