Registered retirement savings plan (RRSP)
Any time’s a good time to think about your RRSP!
The Épargne Placements Québec registered retirement offers attractive solutions, whether you’re looking for an investment strategy that’s simple and secure, or flexible with good returns.
When you invest in an Épargne Placements Québec RRSP, you enjoy many benefits:
- Products well adapted to an RRSP portfolio.
- Competitive interest rates.
- No management or administration fees.
- A 100% guarantee on your capital, regardless of amount or term.
- Amounts invested can be refunded at any time, without penalty, according to the conditions prescribed by the Regulation respecting savings products as well as the Home Buyers’ Plan (HBP) and the Lifelong Learning Plan (LLP).
The RRSP is an investment plan for retirement that offers a number of tax benefits:
- The amounts invested are tax‑deductible.
- The tax payable is deferred, generally to retirement when income is lower and accordingly taxed at a lower rate.
- It’s possible to contribute to your spouse’s RRSP, while personally benefiting from the tax savings.
- The interest generated by your investment is automatically reinvested and is sheltered from tax.
The maximum contribution to an RRSP, for a given taxation year, corresponds to 18% of the income earned during the preceding year, less the pension adjustment (PA)*. The following table shows the maximum amount that can be deducted as an RRSP contribution each year.
The main conditions for opening an Épargne Placements Québec RRSP are as follows:
- Be a Canadian taxpayer domiciled in Québec.
- Have an eligible income, i.e. employement income, net rental income, net business income, disability benefit paid by Retraite Québec or the Canada Pension Plan.
- Be no more than 71 years old, the deadline being December 31 of the year of your 71th birthday.
Except for Stock Index Bonds, you can use all your other products held in the Investment Savings Account to contribute to your RRSP. Once your products are transferred, they maintain the same characteristics. You can perform the transaction directly online though the “Online transactions” section > Operations > Transfers.
* The PA represents the total of the amounts accumulated during the year in the pension plan provided by the employer. It can be a Registered Pension Plan or a Deferred Profit-Sharing Plan.