Registered Pension Plans
A Registered Pension Plan (RPP) is a tax deferred savings vehicle that allows contributions to accumulate tax-free for later use as retirement income.
What is a Registered Pension Plan (RPP)?
- A Registered Pension Plan provides the opportunity for individuals to save for retirement and gives employers a key component of a competitive compensation package.
- RPP’s are subject to applicable Federal and Provincial legislation, and must be registered with Canada Revenue Agency (CRA) and under pension benefits legislation maintained by all provinces. For more information, visit www.cra-arc.gc.ca.
- Contributions made and fees paid by the plan sponsor reduce the amount of corporate income tax that the plan sponsor must pay.
- Earnings in the plan will accumulate tax-free for the member until retirement.
- The retirement income accumulated in a defined contribution pension plan depends on the amount of money contributed and the performance of the investment vehicles chosen by the member.