The RRSP-SDRSP & or 401K Two Main Tax Advantages

  • Contributors deduct contributions against their income for example: if a contributor’s Tax rate is 40% percent every $100 he or she invests in an RRSP/SDRSP will save that person $40 in taxes up to his or her contribution limit.

  • The Growth of RRSP or called SDRSP for Independent Investors contributor’s investment is Tax sheltered. Unlike with non RRSP/SDRSP investments returns are exempt from any capital gains Tax dividend tax or Income Tax. This means that investments under RRSP/SDRSPs compound at a pretax rate.

  • The other called IPP Individual Pension Plan and or IPP is a one (1) person maximum Defined Benefit Pension Plan “BD 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 Investors & TFSA Tax Free Savings Account for the following Year’s Guidelines.

RRSP/SDRSP /IPP Individual Pension Plan Contribution Limits & TFSA

2018 $26,230 & TFSA $5,500

2017 $26,010 & TFSA $5,500

2016 $25,370 & TFSA $5,500

2015 $24,930 & TFSA $10,000

2014 $24,270 & TFSA $5,500

2013 $23,820 & TFSA $5,500

2012 $22,970 & TFSA $5,000

2011 $22,450 & TFSA $5,000

2010 $22,000 & TFSA $5,000

2009 $21,000 & TFSA $5,000

2008 $21,000 $ TFSA $ N/A

2007 $19,000 & TFSA $ N/A

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