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rrsp mississauga Konda Financial  Equity Associates

A RRSP (Registered Retirement Savings Plan) is an investment vehicle designed to help investors save for retirement on a tax-deferred basis.  Once an investor makes a deposit into his/her RRSP, they will receive a tax deduction against their income.

rrsp mississauga Konda Financial  Equity Associates

Investors can contribute up to 18% of their previous years income (less any applicable pension adjustment reversal), up to a maximum amount per year.  If a person does not use any of their eligible RRSP tax deduction room, this amount can be carried forward into future years indefinitely, and be used at a later date. The table below shows the current RRSP maximums.

rrsp mississauga Konda Financial  Equity Associates

18% of earned income from the prior year to a maximum of…

Year

Amount

Year

Amount

2004

 $15,500

2013

$23,820

2005

 $16,500

2014

 $24,270

2006

 $18,000

2015

$24,930

2007

 $19,000

2016

$25,370

2008

 $20,000

2017

$26,010

2009

$21,000

2018

$26,230

2010

$22,000

2019

$26,500

2011

$22,450

2020

$27,230

2013

$22,970

 

 

rrsp mississauga Konda Financial  Equity Associates

Investors are allowed a one-time $2,000 over contribution.  Amounts over this will be subject to a 1% penalty per month.

rrsp mississauga Konda Financial  Equity Associates

Effective June 2005, there are no more foreign content restrictions on RRSP investments.  A wide range of investments qualify within Canadian RRSPs including… GICs, stocks, bonds & mutual funds, to name a few.

rrsp mississauga Konda Financial  Equity Associates

The Canadian stock market represents less than 3% of the world’s total market capitalization…therefore you could take advantage of growth in the remaining 97% of the world’s investment opportunities.  In June 2005, the budget passed law which now makes NO MORE FOREIGN CONTENT RULE RESTRICTIONS for RRSP and RRIF monies invested.  This would be retroactive back to January 01, 2005.

rrsp mississauga Konda Financial  Equity Associates

RRSP contributions can be made from the moment one reports earned income up until the year the individual reaches age 71.  RRSP purchases can be made at anytime throughout the year.

rrsp mississauga Konda Financial  Equity Associates

A spousal RRSP is an opportunity to build a retirement portfolio for one’s spouse if he/she does not work, or has little or no pension to be offered from their current employer.  The person making the RRSP contribution can place the investment in the name of their spouse while still being entitled to a tax deduction.

rrsp mississauga Konda Financial  Equity Associates

Income, interest and capital gains earned in your RRSP are only taxed when taken out of the plan.  RRSP withdrawals then become fully taxable.

The following table shows the amount of “withholding tax” for lump sum withdrawls made from an individuals RRSP.

Amount

Percentage

$1 - $5000

10%

$5000.01 - $15,000

20%

$15,000.01 +

30%

NOTE: Any additional taxes (if any) to be paid will be determined by your TOTAL INCOME earned in the taxation year.

rrsp mississauga Konda Financial  Equity Associates
rrsp mississauga Konda Financial  Equity Associates
rrsp mississauga Konda Financial  Equity Associates