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 RRSP & RRIFs
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 RRSP (Registerd Retirement Savings Plan) |
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A Registered Retirement Savings Plan is a government approved plan through which you save money for your retirement years. Your contributions, within limits, are tax deductible, and the income earned is tax sheltered. You can have any number of plans.
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| RRIF (Registered Retirement Income Plan) |
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RRIFs, life annuities and VBs provide an income that can last for the lifetime of you or your spouse. TCA 90s last until you or your younger spouse turn 90.
Funds which have been transferred from a pension plan are usually subject to pension legislation. At one time, you were restricted to purchasing only life annuities with these funds. Some provinces have approved Life
Income Funds (LIFs) and/or Locked-ln Retirement Income Funds (LRIFs) for these funds (see page 34), as alternatives. These are subject to the RRIF legislation in the Income Tax Act.
Effective April 1, 2002, SK RRIF was introduced under Saskatchewan pension legislation as a retirement income option to replace LIF and LRIF.
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| RESP (Registered Education Savings Plan) |
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An RESP is a Registered Education Savings Plan which is a savings plan for post-secondary education.
A subscriber and/or joint subscriber (must be the spouse or common law partner of the subscriber) make deposits into the plan on behalf of a beneficiary for the use by the beneficiary for post-secondary education.
A subscriber may also be an agency, institution or department that is responsible for the care of a beneficiary.
In 1998, the Government of Canada introduced the Canada Education Savings Grant (CESG) which is a grant paid into an RESP equal to 20% of the first $2,000 in annual contributions, up to a maximum of $400 per year per beneficiary.
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TFSA (Tax-Free Savings Account )
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The Federal Government has introduced a new registered savings account that allows taxpayers to earn investment income tax-free. The Tax-Free Savings Account (TFSA) is available beginning in 2009 to Canadian Residents age 18 or older. TFSA allows taxpayers to set money aside in eligible investment vehicles and watch those savings grow tax-free throughout their lifetime.
There are three basic types of TFSAs: deposit-type plans, mutual funds, and self-directed plans.
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