A Registered Retirement Saving Plan (RRSP) is a plan which you can easily establish through GT Brokers. Do you want more savings when you retire? Do you want to put off paying tax? If your answer is yes for these two questions, the register your investments in RRSP. Your invested money in RRSP grows very much faster.
The RRSP will be registered with Canada Revenue Agency. You or your spouse or common –law partner can contribute to RRSP. Age limit is 71 years or under. The income you earn from RRSP is exempted from tax as long as the funds remains in the plan. In addition, the interest you earn from RRSP is also tax free. When you receive payments from the plan, you have to pay tax.
How much can you contribute to RRSP?
This will be determined by your RRSP deduction limit. It will be the amount of RRSP contributions that you can deduct on your tax return for a year. This will be available in your most recent Notice of Assessment.
When can you start to contribute to RRSP?
You can start to contribute the year after you have your fist “earned income”
Suppose that you are willing to contribute to RRSP, but your current financial position does not allow you to contribute. In this situation, GT Brokers will come to your help. Our Financial Advisor will guide you to take a RRSP loan from us. If you are not willing to take a RRSP loan, there is an option available. It is automatic deductions. This will allow you to save as much as you can afford. This will save you from paying a large amount at the end of the year.
When should you stop contributing to RRSP?
Contribution to RRSP shall be continued until December 31st of the year you turn 71 years of age.
Can you take money out of RRSP?
Yes, you can take, but you have to pay withholding tax for the amount taken.
Even if you still have doubts or need clarifications, don’t hesitate. Just call us. We will guide you and help you to start an RRSP for you. GT Brokers is just for you. You can trust and rely on us for your safety future and happy retired life.