An RRSP provides you with a tax-deferred benefit that grows your money for your retirement. When you contribute to your RRSP, your taxable income is reduced by the amount of the contribution. Then, the RRSP grows tax-free and you will only be taxed when you make withdrawals during your retirement. At this point, you will likely be in a lower tax bracket.
 

Any Canadian who has employment income and files a tax return can contribute to an RRSP. There is no minimum age for making contributions, and contributions can be made up until December 31 of the year that you turn 71.
 

You can contribute up to 18% of your earned income, up to a maximum that is set on an annual basis minus any employer sponsored pension plan contributions.
 

Unused contribution room can be carried over to subsequent years.
 

Meridian can help you plan ahead to set aside money for next year’s contribution, or we can arrange an RRSP Line of Credit for your short-term contribution needs.
 

1. Transfer from savings

Build your savings throughout the year using Meridian’s High Interest Savings Account. When it comes time to invest in your RRSP, you'll already have the funds you need.

2. Pre-Authorized Contribution Plan (PAC) for your RRSP

Managing your RRSP savings with a pre-authorized contribution plan is a smart and easy way to save. Set up your PAC to automatically withdraw as little as $25 from your chequing or savings account. When it comes time to invest in your RRSP, you’ll already have the funds that you need.
 

At Meridian, we have a wide range of options to help you build your RRSP investment portfolio. Contact your Advisor today to learn more. Your Advisor will work with you to help find way to get your money working for your retirement.

 

Download our free PDF booklet Understanding RRSPs to learn more.