Registered Retirement Saving Plan (RRSP)
A Registered Retirement Savings Plan is a tax-deferred account until 71 years old. This is an opportunity provided by the government to offer tax breaks to individuals who wish to save money for their retirement. At the time of using the fund for retirement, the tax must be paid.
RRSP limit that you can contribute can found on your notice of assessment. At the time of consultation, ensure you have your latest notice of assessment with you.
Annual Limit: 18% of eligible income up to $26,010
+/— any Pension Adjustment
+ Previous Contribution Room
Deadline: March 1st of each year
Contributions above the overall contribution limit is subject to a 1% / month penalty 52000 life time over contribution limit
First home buyers can take advantage of $35,000 in RRSP without paying tax.