Registered Retirement Savings Plan Contribution

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Registered Retirement Savings Plan Contribution

An amount of money that a worker places into a Registered Retirement Savings Plan at regular intervals. In Canada, an RRSP is an account into which a worker may make these contributions up to a certain limit throughout his/her working life, and from which he/she begins to take distributions following retirement. The contributions are tax deductible, and they are invested in securities, usually common stock and certificates of deposit.
References in periodicals archive ?
However, note that both the employer's and employee's contributions will reduce the employee's available RRSP contribution room in the following year.
Respondents were asked to complete the sentence, "When making an RRSP contribution, we feel ," by choosing as many words as they wanted from a list provided.
According to the study, nearly two-thirds of Canadians have made or plan to make an RRSP contribution.
PRPP contributions will be limited to an individual's available RRSP contribution room;
nd] Annual RBC RRSP Poll, regular RRSP contribution plans gained in popularity among Canadian RRSP holders (35 per cent), with almost half (48 per cent) of younger RRSP owners (age 18-34) using regular contribution plans.
Allowable RRSP contribution is the lower of: 18 per cent of earned income from the previous year or the maximum annual contribution limit for the taxation year (RRSP contribution room for 2008, 2009 and 2010 are $20,000, $21,000 and $22,000 respectively) or the remaining limit after any company sponsored pension plan contributions.
Members electing to opt out would continue to receive their existing remuneration and RRSP contribution framework.
A $1,000 RRSP contribution earning ten percent return grows to nearly $11,000 in 25 years, compared to just $9,800 in 24 years.
By increasing RRSP contribution limits and establishing the carry-forward provision, the Government is encouraging individual Canadians to prepare for self-sufficient retirement.
In our current example, Tim now has $2,500 to invest in his RRSP and he also has the additional immediate disposable income from the tax savings created by the RRSP contribution (a few hundred extra bucks for necessities).
Having used half of her RRSP contribution room, she now has RRSP savings of $83,000.
If the deceased has unused RRSP contribution room, a contribution can be made to a spousal plan for his or her spouse or common-law partner and deducted on the final tax return.