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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.
The minimum RRIF withdrawal each year is determined by a percentage that is calculated by the account holder's age and the total value of the plan on January 1 each year. [6] The holder of a RRIF may elect to withdraw an amount greater than the minimum RRIF amount for that year, though withholding tax will apply to this supplementary amount.
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).
The tax treatment of a TFSA is the opposite of a registered retirement savings plan (RRSP). Unregistered accounts are subject to tax and hold after-tax money, the TFSA is described as a tax-free account holding after-tax money, and the RRSP is described as a tax-deferred account holding pre-tax money that will be taxed on withdrawal.
The CRA is the largest organization in the Canadian federal public service by number of personnel, employing 54,933 people and has an operating budget of $5.1 billion [7] as of the 2018–19 fiscal year. The agency's headquarters are based in Ottawa, itself divided into five program branches, which directly support the CRA's core ...
[1] In generalised terms, a tax return refers to the yearly income declaration created by the taxpayer for every individual in the country. This enables tax authorities to declare if an individual is eligible to be given back the tax that they had paid over the year. Canadian federal tax returns are filed with the Canada Revenue Agency (CRA).
The home buyers' plan (HBP) announced in the 1992 federal budget is the mechanism that allows to withdraw funds tax-free from RRSPs to use them for the purchase one's first home. The withdrawal must be repaid in full within 15 years.
The first chairman of the board was Roger W. Mehle, who was appointed on October 1, 1986. In 1988 he was reappointed and served continuously until January 31, 1994. President Clinton appointed James H. Atkins to replace him, and the board named Mehle the agency's executive director.