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MAIN FEATURES OF GROUP RRSPs
1. TAX DEDUCTIBILITY:
a. All employee contributions are tax deductible
b. Earnings on investments are not taxed as long as the investments
remain inside an RRSP
2. EASE OF CONTRIBUTION:
a. Employees select how much they will contribute per pay and
usually are free to make lump sum payments at anytime and change
their contribution amount
3. CONTRIBUTE DIRECTLY WITHOUT PAYING TAX:
a. With a Group RRSP a portion of the employee's pre-tax pay
goes directly into their RRSPs, this amount is not taxed
b. In effect employees receive their tax refund by saving throughout
the year
4. FLEXIBILITY AND POPULARITY:
a. Group RRSPs are one of the most popular benefits that employers
can provide to their workforce because of:
- Ease of Administration
- Employees have the option of choosing whether to contribute
and how much to contribute
- Employers can elect to match a percentage of the employee
contributions
5. SPOUSAL PLANS AVAILABLE:
a. Most Group RRSPs will permit employees to contribute to
their spouse's RRSP and still obtain the tax advantage
The capital accumulated in your account may be transferred on
retirement to a personal RRSP if you are under 69, or otherwise
to a RRIF
This material is for information purposes only and should
not be construed as legal or tax advice. Every effort has been
made to ensure its accuracy, but errors and omissions are possible.
Individual circumstances may vary and specific legal and tax advice
is recommended. Future tax changes and market conditions may affect
this information.
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