Our RRSP category allows employees to prepare for retirement by investing their Wallet into a group Registered Retirement Savings Plan (RRSP).
Employees decide how much of their Wallet budget to invest, and employers decide if they want to match their employee’s contributions or make other contributions.
Why choose RRSPs?
RRSP quick hitters
Why choose RRSPs?
Grow tax-free
With your RRSP, the growth of your investments is tax-deferred, meaning you won't pay any taxes on the earnings within the account as they accumulate. When you eventually withdraw these funds in retirement, you'll likely be taxed at a lower rate.
Lower your taxable income
Contributions to your RRSP within the allowable limits directly reduce your taxable income for the year, offering you immediate tax relief. This reduction can lead to significant tax savings when you file your annual return.
Finance your home or education
You can access funds from your RRSP before retirement for specific purposes through Canada's Home Buyer's Plan (HBP) and the Lifelong Learning Plan (LLP) programs. These plans allow you to withdraw a predefined amount to finance your first home purchase or to pay for your or your spouse's education.
The HBP allows you to borrow up to $35,000 from your RRSP to buy or build a first home, repayable over 15 years. The LLP lets you withdraw up to $10,000 per calendar year for education, with a total limit of $20,000, repayable over 10 years. These withdrawals are not taxed at the time of withdrawal as long as they are repaid within the specified time frames, making them advantageous options for funding significant life events.
RRSP quick hitters
Maximize Your Contributions
For 2024, the RRSP annual contribution limit is $31,560, and any unused contribution room can be carried forward indefinitely, offering flexibility in your retirement planning.
Contribute Up to 18%
You're allowed to contribute up to 18% of your previous year's earned income to your RRSP, as long as it doesn't surpass the annual maximum limit, optimizing your tax benefits.
Invest From 18 to 71
You can open and contribute to an RRSP from age 18 until you reach 71, at which point your RRSP must be converted into a Registered Retirement Income Fund (RRIF).
Benefit From Unlimited Carry-Over
One of the significant advantages of RRSPs is the ability to carry forward unused contribution room indefinitely, ensuring you never lose the opportunity to maximize your tax-advantaged savings.