A GREAT INVESTMENT IN YOURSELF
COMPANY GROUP RRSP & TFSA PLANS
The Group Registered Retirement Savings Plan (RRSP) is a combination of several individual RRSPs. Your employees may contribute through payroll deductions or by preauthorized payments, which will allow them to save and benefit from tax advantages. Employers may contribute to a group RRSP. Your contributions are then subject to payroll taxes and are immediately vested.
Advantages for the employee
- Tax-sheltered contributions and investment income until payout
- Contributions are tax deductible
- Immediate tax savings at source
- Unused contribution amounts can be carried forward
- Payroll deductions make saving easier
- Contributions can be made in a spouse’s name
- Immediate vesting of employer contributions
- Low Management expenses
- Some investment funds available only through group plans
Advantages for the employer
- Simple administration
- Employer is not required to contribute
- Employee salaries are tax deductible Flexibility in plan design
- Employer contributions are tax deductible
- Flexibility in plan design
