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

Registered Retirement Savings Plan RRSP is called SDRSP Self-detected Retirement Saving Plan contribution limits as of 2018 is 18% percent of your total earning line 150 in your Income Tax reported in the previous year as of 2017., and or maximum amounts of cdn$26,230.00

Contributor Tax Rate %

  • Contributor 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.

SDRSP Self Directed Savings Plan

  • 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 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.


Retirement Plan

  • 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.


Pension Plan Contribution limits

In 2018 year update for someone who never contributed to Retirement Savings Plan.

TFSA 2019 Contribution

TFSA limits $6,000 for 2019 in total room available since TFSA was introduced 2009 to 2019 in total is cdn$63,500.


The contribution for RRSP & TFSA Tax Free Savings

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


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