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
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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.
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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.
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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.
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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.
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At age 71 RRSP holdings are moved into a RRIF account (no age restriction on how long the RIF can remain open).
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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.
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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%
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