RETIREMENT PLANS
CONTRIBUTION LIMITS
RRSP contribution limit is 18 percent
of earned income to a maximum of:
2018 $ 26,230
2017 $ 26,010
2016 $ 25,370
2015 $ 24,930
2014 $ 24,270
Unused Contribution room can be applied in subsequent years based on the income. It will help reduce your tax burden when you most need the deductions.
CRA Notice of Assessment will contain your RRSP deduction limit for the following year.
Locked-In RRSPs (LIRAs) are accounts that hold vested funds that were benefits acquired and contributed to a retirement pension plan (RPP) during your employment period.
LIRA funds are restricted to withdrawals until the individual is eligible to receive retirement income (usually age 71 unless your retire early). The account is then transferred to a LIF.
To access your LIRA funds we can help you UNLOCK 50% of the holdings as a one-time benefit.
Ask us how you can unlock your LIRA account and withdraw the funds.
At age 71 RRSP holdings are moved into a RRIF account (no age restriction on how long the RIF can remain open).
Withdrawals from RRIFs are mandatory. A minimum amount has to be taken out but you can withdraw freely as no maximum is imposed.
All withdrawals are taxable income.
RRIF withdrawal amounts are calculated based on the value of the holdings at the the beginning of the year.
eg Percentage of total assets in the RRIF
Age 72 5.28%
Age 73 5.40%
Age 74 5.53%
By age 94 it reaches 20%
