Women who engage in low-wage work and experience costs associated with child rearing or the care of a sick family member do not necessarily have the ability to place money aside and benefit from tax savings through registered retirement savings plans
. For example, in 1996, only 4 percent of low wage-earners belonged to contributory plans, with an average contribution of $253 for plan members with incomes less than $10,000 (NCW, 1996).
BMO Financial Group unveiled these findings in a new study on Registered Retirement Savings Plans
(RRSPs), the Canadian equivalent of employer-sponsored 401(k) accounts in the U.S.
According to the survey, only 38 per cent of Canadians contributed to their Registered Retirement Savings Plans
this season and the majority said that they do not have enough money to contribute.
As requested by the AICPA Tax Division's Form 3520 Task Force in August 2003, (1) Notice 2003-75 (2) sets forth a simplified reporting regime for taxpayers with interests in Canadian registered retirement savings plans
(RRSPs) and registered retirement income funds (RRIFs), effective for tax years beginning after 2002.
However, not much impact is being felt from the federal government's plan to encourage home sales by allowing first-time buyers to borrow up to $20,000 from their registered retirement savings plans
As a result, many Americans and Canadians with registered retirement savings plans
(RRSPs) and registered retirement income funds (RRIFs) dont need to file Form 8891 to report details on these plans.
* Exempt Canadian registered retirement savings plans
(RRSPs) and registered education savings plans (RESPs) from the Form 3520-A filing requirements and their U.S.
In May 1985 significant changes were proposed to the rules governing registered retirement savings plans
(RRSPs) and registered pension plans (RPPs).
Changing the deposit insurance coverage limit to $250,000 (currently $100,000 for basic deposits and unlimited for deposits in registered accounts such as registered retirement savings plans
and tax-free savings accounts).
The topics are a slightly more lenient handling of government student loans and broader protection for registered retirement savings plans
Registered retirement savings plans
(RRSPs) are the most popular tax shelters or retirement tax planning mechanisms used by Canadians.
Since the federal Income Tax Act does not permit contributions to RESPs as deductions from income, they are not as attractive from a tax standpoint as the more familiar registered retirement savings plans
, or RRSPs as they are commonly called (stay tuned for my article on RRSPs to appear in early 1993).