The RRSP-SDRSP & or 401K Two Main Tax Advantages
Old’aged Savings Security
Registered Retirement Savings Plan RRSP contribution limits as of year 2020 total amounts is Canadian dollar $27,230. If you have corporate/company pension plan., your retirement savings contribution toward RSP is reduced. The 2019 is 18% percent of your total earning line 150 in your Income Tax reported in the previous year as of 2017., and or maximum amount of $26,230.00
Tax Rate Contribution
Contributor deduct contributions against their income for example’ if the contributors tax rate is 40% percent every $100 he/she invest in RRSP registered retirement savings plan, or SDRSP self-registered retirement savings planning it will save that person $40 in taxes up to his or her contribution limit.
The growth of registered retirement savings plan RRSP for independent direct investor and contributor investment is tax sheltered.
In the upside unlike with non-registered investment contribution of retirement plans. The investments returns are exempt from any capital gained, tax dividend, tax or income tax, it means the investment under RRSP registered retirement savings plan are compound at a “pretax’rate”.
The other called individual pension plan and or IPP is one (1) person maximum defined benefit pension plan “DBP Plan” which allowing the plan member to accrued a retirement income on a tax-deferred basis.
Registered Retirement Savings Plan RRSP-SDRSP, deferred profit sharing plan DPSP and the Tax Free Savings Account TFSA limits as well as the year’s maximum pensionable earnings.
The contribution limits for RRSP-SDRSP registered retirement savings plan or called SDRSP self-directed retirement savings plan for direct independent investor.
The TFSA Tax Free Savings Account for the following year contribution annual guidelines.
Carry Over RRSP Annual Contribution
2023 RRSP $*
2022 RRSP $29,210 & TFSA $6,000
2021 RRSP $27,830 & TFSA $6,000
2020 RRSP $27,230 & TFSA $6,000
2019 RRSP $26,500 & TFSA $6,000
2018 RRSP $26,230 & TFSA $5,500
2017 RRSP $26,010 & TFSA $5,500
2016 RRSP $25,370 & TFSA $5,500
2015 RRSP $24,930 & TFSA $10,000
2014 RRSP $24,230 & TFSA $5,500
2013 RRSP $23,820 & TFSA $5,500
2012 RRSP $23,820 & TFSA $5,500
2011 RRSP $22,970 & TFSA $5,000
2010 RRSP $22,970 & TFSA $5,000
2009 RRSP $21,000 & TFSA $5,000
2008 RRSP $21,000 & TFSA $N/A
2007 RRSP $19,000 & TFSA $N/A