How retirement investments can work for you.
Invest now, enjoy rewards later
Retirement savings offer you a way to put aside money during your high-earning years. You get long-term tax benefits as well as a nest egg.
Pick your products
Choose from a range of mutual funds, investment savings and registered GICs. Profitable over the long term, perfect for retirement savings.
Personalize your plan
ATB Wealth™ can help you build a customized portfolio of Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) investments for an investment plan that works for you.
Find the retirement investments that work for you.
Frequently Asked Questions
You are eligible to contribute to an RRSP investment if you meet all of these criteria:
1. You are currently working in Canada
2. You're under the age of 71
3. You have contribution room (an amount determined by the Canadian government and based on your age, your past contributions and your income)
4. You file income tax with the Canadian government
You can use part or all of your own RRSP contribution room to contribute to a plan in your spouse's or common-law partner's name. What you can't do is access more contribution room (and thus more tax deductions) by contributing to your spouse's RRSP.
You also can't own an RRSP jointly with your spouse, or "pool" your contribution room.
In the year you turn 71, you'll have to choose one of the following options for your RRSPs:
- withdraw them
- transfer them to a RRIF
- use them to purchase an annuity
When you withdraw funds from your RRSPs, your RRSP issuer will withhold tax. For more information, see Making Withdrawals.
Your RRSP issuer will not withhold tax on amounts that are transferred directly to a RRIF or that are used to purchase an annuity. You may have to pay tax on the income when you start receiving payments from the RRIF. Enter these payments as income on your income tax and benefit return for the year you receive them.
Absolutely—just keep in mind that, while both RRSPs and TFSAs are registered savings plans, they have different contribution limits and different ways of providing tax advantage.
Your contributions (within your contribution limit) to an RRSP are immediately deducted from your taxable income. The advantage is that, when you withdraw and pay tax on the money later, you're likely to be in a much lower income tax bracket.
With a TFSA, you pay tax on the contributions you make in the year you make them, but when you withdraw the money, both the interest and principal are exempt from regular income tax.
All other things being equal, contribution limits for an RRSP are usually substantially higher than contribution limits for a TFSA.
While these are the most important distinctions to keep in mind, there are other differences between RRSPs and TFSAs. It's a good idea to talk to your investing advisor before deciding which registered plan works best for your situation.
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