Registered Retirement Savings Plan (RRSP) in Vancouver, British Columbia, Canada

Registered Retirement Savings Plan (RRSP)

The 2007 Federal Budget proposes to increase the RRSP conversion age from age 69 to age 71. Once these budget proposals become law, this change will be effective for 2007. This means that 69 and 70 year olds with earned income or unused RRSP contribution can make RRSP contributions up until the end of the year in which they reach age 71.

You can contribute up to 18% of your previous year's earned income up to a yearly maximum less than your Pension Adjustment amount. The RRSP limits for 2003 is 14,500 increased to 18,000 by year 2006. Your RRSP deduction limit is shown on your Notice of Assessment for the previous tax year.
Starting with your 1991 RRSP limit, if you didn't use some or all of your RRSP contribution room, you can carry forward your contribution limit to the following year.
There is a 30% maximum foreign content limit. On Feb 23, 2005, the limit has been eliminated.
The different types of RRSPs are:
- Spousal RRSP
  - Married taxpayers can contribute to an RRSP registered in the name of the spouse and claim the tax deduction.
  - The contributing spouse can only contribute to the extent of his/her maximum contribution room available.
  - Any withdrawal of contributions made in the year the plan is deregistered or the two calendar years preceding the contribution is taxable to the contributor in the year of withdrawal.
- Self-directed RRSP
  - The planholder makes all the investment decisions.
  - The planholder can invest in a full range of securities.
  - The planholder may hold up to 30% of the plan's book value in foreign investments.
  - The plan may be more suitable for those with larger amounts to invest due to higher administration fees.

Learn more about these services: Financial Planning, Retirement Planning, Investment Planning, Estate and Tax Planning, Life Insurance, RESP

Please note: Ms. Mimi Tang, offers financial planning and insurance services as an independent representative, under Mimi Tang Wealth Management and Consulting LTD. and these services are offered independently of PEAK Securities.

PEAK Securities inc., an IDA registered, full service investment broker, limits its responsibility to investment products such as stocks, bonds, and mutual funds. PEAK Securities inc. is a member of the Canadian Investor Protection Fund.

Call Mimi Tang at (604) 926-8068 or email mtang@peakgroup.com
for financial planning in Vancouver, British Columbia, Canada.