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
2018 $ $
2017 $26,010 $5,500
2016 $25,370 $5,500
2015 $24,930 $10,000
2014 $24,270 $5,500
2013 $23,820 $5,500
2012 $22,970 $5,000
2011 $22,450 $5,000
2010 $22,000 $5,000
2009 $21,000 $5,000
2008 $21,000 N/A
2007 $19,000 N/A