Registered Retirement Savings Plan (RRSP)
Description
A Registered Retirement Savings Plan (RRSP) is a tax-deferred account designed specifically for retirement savings. Any resident of Canada under the age of 71 who has earned income may establish and contribute to an RRSP.
Objective
To provide individuals with an account into which they may contribute tax-deferred dollars that may be used for retirement.
Suitability
Anyone under the age of 71 who has earned income to save for retirement.
Features
- Tax Deferral: Contributions may be tax-deductible and the investments grow tax-deferred until removed.
- Flexibility: Contributions can be invested to meet your personal objectives.
- Contribution Limits: In general, an individual's RRSP contribution limit is determined by taking the lesser of 18% of the individual's previous year's earned income and the current year's RRSP dollar limit. Money contributed to a company pension plan and unused contribution from previous years adjust an individual's contribution room.
- Conversion: RRSPs must be converted to Registered Retirement Income Funds (RRIFs) by the end of the year you turn 71.
- Account Consolidation: Edward Jones offers you an opportunity to consolidate all of your RRSP holdings into one account. This will allow you to easily monitor your investment strategy. Additionally, you can make this year's contribution at the same time as you consolidate your holdings.
For more information, please contact your Edward Jones financial advisor*.
