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A registered retirement savings plan (RRSP) (French: régime enregistré d'épargne-retraite, REER), or retirement savings plan (RSP), is a Canadian financial account intended to provide retirement income, but accessible at any time. RRSPs reduce taxes compared to normally taxed accounts.
A registered retirement income fund (RRIF, French: fonds enregistré de revenu de retraite, FERR) is a tax-deferred retirement plan under Canadian tax law. Individuals use an RRIF to generate income from the savings accumulated under their registered retirement savings plan. As with an RRSP, an RRIF account is registered with the Canada Revenue ...
Canadian federal income taxes, both personal and corporate income taxes, are levied under the provisions of the Income Tax Act. [2] Provincial and territorial income taxes are levied under various provincial statutes. The Canadian income tax system is a self-assessment regime. Taxpayers assess their tax liability by filing a return with the CRA ...
Canadian residents and corporations pay income taxes based on their world-wide income. Canadians are in principle protected against double taxation receiving income from certain countries which gave agreements with Canada through the foreign tax credit, which allows taxpayers to deduct from their Canadian income tax otherwise payable from the ...
Unlike an RRSP, which must be converted to a registered retirement income fund (RRIF) when the holder turns 71, a TFSA does not expire. If an account-holder withdraws funds from a TFSA, his or her contribution room is increased by that amount on 1 January after the withdrawal. In an RRSP, the contribution room is not increased to reflect ...
The distinction between a LIRA / LRSP and a registered retirement savings plan (RRSP) is that, where RRSPs can be cashed in at any time, a LIRA / LRSP cannot. Instead, the investment held in the LIRA / LRSP is "locked-in" and cannot be removed until either retirement or a specified age outlined in the applicable pension legislation (though certain exceptions exist).
Retirement is the withdrawal from one's position or occupation or from one's active working life. [1] A person may also semi-retire by reducing work hours or workload. Many people choose to retire when they are elderly or incapable of doing their job for health reasons. People may also retire when they are eligible for private or public pension benefits, although some are forced to retire when ...
The 1977 Canadian federal budget tightened the rules of the RHOSP: [14] It removed the purchase of furnitures from the list of usage allowed for tax-free use of RHOSP proceeds starting in 1978; [15] Deductible contributions were disallowed for a taxpayer whose spouse owned a home; [16] Tax-free rollover of RHSOP funds to a RRSP was suspended;