3 Things You Should Know About RRSPs

Registered Retirement Savings Plans (RRSP) are a personal savings plan that allows for you to save for retirement with the bonus of tax benefits.

Investing in RRSPs can be done many ways, including Term Deposits, Mutual Funds and cash.

3 Things You Should Know

  1. Save with Tax Deductions

Every RRSP contribution you make is tax deductible. The more you contribute within your deduction limit, the more you will receive back as a tax break.

  1. Save for Later in Life

The funds you invest in your RRSP are tax-sheltered, meaning the total value will grow quicker and provide a considerable foundation for your retirement nest egg. The income earned in your RRSP will not be taxed until it is withdrawn.

  1. Time Your Contributions

An RRSP contribution is just that, how much money you have added to your RRSP. An RRSP deduction on the other hand is how much of that contribution you have used on your tax return to reduce your income for tax purposes. It is acceptable to make a contribution to your RRSP and save the deduction for future years. If you are in a situation where you haven’t claimed all your past RRSP contributions on your tax return, your deduction limit will carry forward indefinitely to be claimed at a time that is more advantageous to you.

Contact one of our Member Advisors today to start your investment journey. 

Written by

kmaunula@copperfin.ca

Kylee Maunula is a Confederation College, and Lakehead University graduate, who has been helping members reach their financial goals for over 5 years with lending and investment advice. This “Thunder Bay Lifer” enjoys travelling all over the world and spending time in her dream house she just built on Lake Superior.