• Main Features of Group RRSPs
• Group RRSP Advantages
• Group RRSP Disadvantages
• Group RRSP Employer Benefits
• Group RRSP Employee Benefits
• Why Should an Employer Consider Implementing a Group RRSP Program?
  

GROUP RRSP EMPLOYEE BENEFITS

1. A WIDE CHOICE OF INVESTMENTS: the group RRSP usually provides a number of investment options that can be tailored to suit the needs of each employee participating
   
   
2. TAX-FREE COMPOUNDING: intrinsic to an RRSP investment is its advantage of allowing tax-free growth
   
   
3. IMMEDIATE TAX SAVINGS: plan contributions are deducted from the employees' pay reducing the amount of income tax every pay. In effect employees receive their tax refund throughout the year
   
   
4. LOW COST: there is no set-up fee, no annual trustee fee and no termination fee. However, there are still normal fees to the individual investors for the purchase and management of the funds
   
   
5. A DISCIPLINED SAVINGS PLAN: paying yourself first is the best way to save. Regular payroll deductions allow participants to take advantage of dollar cost averaging and increase the compounding effect
   
   
6. CUSTOMIZED PLAN: employees are in charge of their own accounts and individually choose their contribution amounts and investments. Together with the assistance of a financial advisor, the employees can design their own plan suitable to their earnings, risk tolerance and objectives
   
   
7. LOW MINIMUM CONTRIBUTIONS: employees can contribute as little as $25 per fund per pay, and can make lump sum payments at any time to take full advantage of the annual RRSP limit
   
   
8. INVESTMENT IS EASILY TRANSFERABLE: any employee who leaves the company can transfer a Group RRSP into an individual RRSP therefore it is a portable investment
   
   
9. PROFESSIONAL INVESTMENT ADVICE: employees have access to a financial advisor to assist them with making educated decisions on all aspects of their investment plan
   
   
10. SPOUSAL RRSPS ARE ELIGIBLE: employees may elect the option to contribute to RRSPs in their spouses name to income split to result in future lower income tax for the couple during retirement or current tax year relief
    
    
11. CASH PLAN OPTIONS: a Group Plan can also be used for a payroll deduction savings plan outside of an RRSP, thus being non registered
    
    

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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