Tag Archives: RRSP

Using RRSP funds before Retirement

The purpose of a Registered Retirement Savings Plan (RRSP) is to provide a means to save for retirement on a tax-deferred basis. Usually, withdrawing from an RRSP before retirement is not recommended. This is because the funds which are withdrawn cannot be recontributed and their future investment income is lost. However, there are two situations…
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A Guide to the Basic RRSP Rules in 2020

Here are the basic rules which govern investments in a Registered Retirement Savings Plan. 1. Deduction Limits Your deduction limit will be available on your Notice of Assessment provided by the Canada Revenue Agency (CRA) after you’ve filed your annual tax return. Use the following table to calculate this amount yourself. 2. Earned Income Sources…
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When to Start Receiving Old Age Security Benefits

Previously the Old Age Security (OAS) benefits were automatically paid to eligible recipients when they reached 65 years of age. In 2013 the government gave recipients the option of deferring these payments for up to 5 years. This results in an increase in the monthly benefit eventually received. If a Canadian defers these payments for…
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