REGISTERED RETIREMENT SAVING PLAN (“RRSP”)

WHAT IS A RRSP?

A Registered Retirement Savings Plan (RRSP) is a retirement account that’s existed since 1957. RRSPs were introduced by the government to help Canadians save for retirement. The main benefit of RRSPs is that tax on RRSP contributions is deferred until retirement.

WHO CAN ISSUE RRSPs?

• Banks

• Insurance companies

• Credit unions and

• Trust companies can issue RRSP

DEADLINE FOR CONTRIBUTING TO AN RRSP

For the 2019 tax year you can contribute to an RRSP until March 2, 2020.

HOW DO YOU CLAIM YOUR RRSP DEDUCTION?

In your Income Tax and Benefit Return, you can deduct RRSP contributions that you made. Your RRSP issuer will give you a receipt for the amounts that you contributed. If you contributed to your spouse’s or common-law partner’s RRSP, the receipt should show your name as the contributor and spouse’s or common-law partner’s name as the annuitant.

AGE LIMIT FOR CONTRIBUTING TO AN RRSP

The year you turn 71 is the last year which you can make a contribution to your RRSP.

HOW MUCH CAN YOU DEDUCT?

The amount of RRSP contributions that you can deduct for 2019 is based on your RRSP deduction limit which appears on your latest Notice of Assessment.

Contact us: If you have any questions or inquiries regarding RRSP account, you can contact us at 647-987-2099 or send email to info@globalabcservices.com to book a free consultation.