A Registered Retirement Savings Plan (RRSP) is an account, registered with the federal government, which you use to save for retirement. RRSPs have special tax advantages.
Three tax advantages
- Tax-deductible contributions – You get immediate tax relief by deducting your RRSP contributions from your income each year. Effectively, your contributions are made with pre-tax dollars.
- Tax-sheltered earnings – The money you make on your RRSP investments is not taxed as long as it stays in the plan.
- Tax deferral – You'll pay tax on your RRSP savings when you withdraw them from the plan. That includes both your investment earnings and your However, you have deferred this tax liability to the future when it’s possible that your marginal tax rate will be lower in retirement than it was during your contributing years.
How much you can contribute in CANADA
Anyone who files an income tax return and has earned income can open and contribute to an RRSP. There are limits on how much you can contribute to an RRSP each year. You can contribute the lower of:
- 18% of your earned income in the previous year, or
- The maximum contribution amount for the current tax year: CA $26,010 for 2017.
It is the associate’s responsibility to monitor the combined maximum for all RRSPs personally held.
Sun Life Financial
Eligibility: You are eligible to enroll in Daymon Canada Group RRSP Plan upon your date of hire and can contribute as soon as it is administratively possible. Implementation is expected on or around August 1, 2017. You will receive enrollment documents directly from Sun Life Financial and will be sent to your home address on record.
Employee Contributions: You may contribute a percentage of your eligible compensation through regular payroll deductions.
Employer Contribution: Daymon Canada will provide an employer match dollar for every dollar the percent you contribute per pay period, up to 3% of eligible compensation. You will be eligible for the match after one full year of service. Because these contributions are discretionary, they may vary from year to year. Associates will be immediately 100% vested in this contribution.