Registered Retirement Savings Plan Contribution

(redirected from RRSP Contribution)

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
"Using the money to make a 2016 RRSP contribution now instead of waiting until the deadline will give you almost an extra year of tax-deferred growth.
(33) However, there is still a large unused RRSP contribution room as of 2011 amounting to over $680 billion.
However, note that both the employer's and employee's contributions will reduce the employee's available RRSP contribution room in the following year.
According to the study, nearly two-thirds (64 percent) will be making an RRSP contribution before the March 2, 2015 deadline.
This is especially effective if you tend to maximize your annual RRSP contribution. It's like moving your coins from a pocket with a hole in it to one with no hole.
According to the study, nearly two-thirds of Canadians have made or plan to make an RRSP contribution. However, the investment they make would be less than last year.
Currently, the average RRSP contribution in Canada is between USD2,000 and USD2,500 a year.
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.