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 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 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 Investors & TFSA Tax Free Savings Account for the following year’s guidelines.


RRSP-SDRSP *IPP Individual Pension Plan Contribution limits

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

TFSA limits $5,500 for 2018 in total room availabilities since TFSA was introduced 2009 to 2018 in total is cdn$57,500.

The contribution for RRSP & TFSA Tax Free Savings

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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