CELI | Services financiers - Épargne individuelle | Lussier Dale Parizeau

RRSP - RRIF

A Registered Retirement Savings Plan (RRSP) is an effective way to plan for your retirement.

The money you save for retirement in this account during your working life is tax-free.

You can withdraw and use funds from your RRSP account before you retire, for instance to purchase a house (HBP) or go back to school (LLP).

When should I contribute in an RRSP? How much should I invest? What type of RRSP is right for me?

Anyone aged 71 or younger with earned income in Canada can contribute to an RRSP. You can contribute to your RRSP until December 31 of the year you turn 71. The contribution limit for 2017 is 18% of your income from the previous year, up to $26,010. You must also take into account contributions made to your employer’s pension plan. However, you can still make an excess contribution of up to $2,000.

You can contribute in your own name or for your spouse.

If you do not fully use your contribution room for a year, it gets carried forward to future years. This amount appears on your annual notice of assessment sent by the Canada Revenue Agency.

What should I do with my RRSP when retiring?

Your RRSP must be transferred to a RRIF (Registered Retirement Income Fund) by December 31 of the year you turn 71. This transfer is tax-free.

An RRIF is the continuation of an RRSP. Savings will continue to be sheltered from tax. However, you must withdraw a minimum annual amount that will be taxable. This amount is set as a percentage of your portfolio and increases every year. The amount withdrawn becomes part of your taxable income.

Thinking of opening an RRSP? Talk to one of our financial security advisors! They will inform you on the best strategies for your situation and advise you to help you maximize your income sources in retirement.

 

CONTACT OUR ADVISORS NOW!

 

5 reasons to choose Lussier Dale Parizeau

  • 1

    Peace of mind
    Our brokers and financial security advisors have a solution for every situation that takes into account your age, your occupation and your personal needs to protect your quality of life and your financial stability.

  • 2

    Our service
    Your Lussier Dale Parizeau broker is at your service every step of the way, from quote to claim.

  • 3

    Competitive costs
    Thanks to our vast network of insurers, your Lussier Dale Parizeau broker can help you get you the best coverage and make the best investments to safeguard your assets and your lifestyle.

  • 4

    One-stop shop
    Save time and avoid insurance overlaps by entrusting your personal insurance and investments to a broker that knows you well.

  • 5

    Leadership
    Isn’t it reassuring to deal with a prestigious and stable firm that has been standing by its clients’ side for decades?

Your email address will not be published.
Required fields are marked with *