Do more for your GRSP
A Registered Pension Plan (RPP) is a form of trust that provides pension benefits for an employee upon retirement. RPP’s are registered with the Canada Revenue Agency. Both the employee and employer, or just the employer, make contributions to this retirement plan until the employee either leaves the company or retires. An RPP has to be set up by an employer, and registered by Wiegers Financial & Benefits, to provide an employee with a pension when they retire. RPP amounts can include:
- Contributions for current service
- Contributions for past service as of 1990 or later years
- Contributions for past service for 1989 or earlier years while a contributor
- Contributions for past service for 1989 or earlier years while not a contributor
Contributions to an RPP are tax deductible for both the employee and employer. Contributions to the plan and gains on underlying assets are tax deferred, so the funds are taxed when they are withdrawn from the plan.