Group RRSPs

A Group RRSP is identical to an individual RRSP – only it is set up by your employer.

4 things to know about Group RRSPs

  1. A Group RRSP is designed to encourage you to save at work by contributing through payroll deductions.
  2. Both you and your employer may contribute depending on the rules of the plan.
  3. All contributions (both yours and your employers) are tax-deductible to you – and all investment earnings are tax-sheltered.
  4. Like an individual RRSP, you decide how your money is invested. Your employer will provide a range of investment options to choose from. You’ll likely have fewer investmentInvestment An item of value you buy to get income or to grow in value.+ read full definition choices than you would with an individual RRSPRRSP See Registered Retirement Savings Plan.+ read full definition.

Learn more about RRSPs.

If you leave your employer

Your Group RRSP money is not locked in. Once you leave your employer, your Group RRSP money can be:

  • transferred to your own individual RRSP (or RRIF if you want to be receiving immediate income),
  • used to buy an annuity, or
  • taken in cash (it will be taxed as income in the year you receive it).

Caution

There may be restrictions on withdrawals from your Group RRSP while you are employed. Understand the rules of the plan before you investInvest To use money for the purpose of making more money by making an investment. Often involves risk.+ read full definition.

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