Some members might not be sure about how Individual and Group RRSPs work. Here’s a quick refresher sourced from the Canada.ca website:
- The Registered Retirement Savings Plan helps you save for retirement during your working years
- You can contribute 18% of your previous year’s income (total limit for 2020 is $27,230).
- The amount that you can contribute will be included on your notice of assessment that is created after you file your taxes. Sign on to My Account on CRA.ca to access this information.
- The contributions deadline is March 1. This means that everything you saved between March 2 from the previous year can be counted on your tax return for that year
- You can continue to contribute until
- You’ve reached your annual limit
- Until December 31st of the year you turn 71
- Each year when you file your taxes, you can claim your contributions to help reduce what you may owe in tax
- A Group RRSP is similar to an individual/personal RRSP, but it is sponsored by the employer (plan sponsor). In this case, CEIRP is the plan sponsor and represents the participating unions and guilds. Contributions are made through payroll deductions.
- At CEIRP, Canada Life manages and invests our collective contributions. The tax receipt for your contributions is produced and sent to you by Canada Life.
- For more information about how RRSPs work, log onto MyCanadaLifeAtWork.ca and then click on the Learning tab to access iAquaint.
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