A Registered Retirement Savings Plan (RRSP) is an investment plan registered with the government to which you or your spouse can contribute to save for retirement. Investments can be made through stocks, mutual funds, bonds, etc… For information on what investments are RRSP eligible, please contact your financial advisor and/or your financial institution.
RRSP contributions can be used as a means to reduce your taxes payable and can increase your refund. Amounts earned in the RRSP investment are exempt from tax for the time the funds remain in the plan. When you cash in or receive payments from the plan (typically at retirement) you will then pay tax on those amounts.
March 1, 2010 is the deadline for making contributions to your RRSP for the 2009 tax year. The maximum amount you may contribute to an RRSP is 18% of your “earned income” up to a maximum of $21,000. You will find your maximum contribution limit for 2009 on your 2008 Federal Notice of Assessment.
The deadline is fast approaching! Contact us as soon as possible for an evaluation to determine your optimal RRSP contribution amount for the 2009 tax year. We have Financial Advisors on call to help you invest wisely.
