An RRSP is a retirement savings plan that you establish, that we register, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax.

Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.

Why choose a seg fund vs. a traditional mutual fund this RRSP Season?

  • Protection of assets through principal guarantees
  • Option to increase your clients’ protected amount
  • Estate planning benefits: bypass probate, reduced costs and maintain privacy
  • Potential creditor protection for non-registered assets (especially important for business owners, professionals or self-employed individuals)

And similar to Mutual Funds, seg funds held in an RRSP continue to enjoy:

  • Tax-deferred growth
  • Potential creditor protection in case of a bankruptcy

How much you can contribute

Anyone who files an income tax return and has earned income can open and contribute to an RRSP. There are limits on how much you can contribute to an RRSP each year. You can contribute the lower of:

  • 18% of your earned income in the previous year, or
  • the maximum contribution amount for the current tax year: $26,500 for 2019.

Shelter your retirement savings from taxes

If you’re saving for retirement, you want your money to grow steadily and reliably so you know you’ll have enough to live day-to-day and enjoy life when you have more time on your hands. Your contribution to an RRSP is tax-deductible, up to your deduction limit, so you save on taxes each year you contribute. An RRSP also helps you reach your financial goals for your retirement efficiently because you don’t pay tax every year on the growth of your investments. Instead, the money you would have paid in taxes continues to grow inside the plan. You do have to pay taxes on the amount of any withdrawal.


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