Start a Group Registered Retirement Savings Plan at No Cost to You
Garret Group can help your business start a group Registered Retirement Savings Plan (RRSP) for your employees – with no cost to you as the employer!
What Is A Group RRSP?
A group RRSP is just a collection of individual RRSPs that employees have access to through their sponsoring employer. This allows all contributions to individual RRSPs to be made by individual employees, regardless of employer contribution.
Since income is not taxed in an RRSP until the money is withdrawn, and contributions to an RRSP are taken from the employee’s taxable income, this reduces the income tax they must pay.
Although RRSPs are designed for providing retirement income, in some circumstances they can also be used for:
- Purchasing a home
- Funding post-secondary education
Employees can choose between two options for contributing to their RRSPs:
- They can make regular payroll contributions and get immediate tax relief.
- They can make lump sum contributions at any time.
The employees will have access to an online portal, where they can manage their accounts with ease.
Our group plan also offers a wide variety of mutual fund investment choices and term deposits.
Contact Garrett Insurance Group today to talk to an advisor about setting up a group RRSP.