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.
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 Contribution Limits||TFSA Contribution Limits|