What is an RRSP and what are its advantages?
Intended as a way to save for retirement, a registered retirement savings plan has three main advantages. First, an RRSP helps prepare for a more comfortable retirement. Second, the contribution amount is tax deductible to a limit set out by law, and third, the investment gains are tax-free so long as they remain in your plan. As well, purchasing Class A, Series 1 shares in the Fund RRSP entitles you to a tax credit of 30% of the amount invested (15% from the federal government and 15% from the Qubec government), which is added to the average 44.8% deduction provided by a traditional RRSP.
