Retirement Savings Plan: Who Qualifies and What You Get
Learn how the Retirement Savings Plan works, including tax deductions for contributors and the rules regarding fund accessibility.
The Retirement Savings Plan is a way to set aside money for your later years while receiving certain tax advantages today.
Who it's for
This plan is available to anyone who is a tax resident of the country.
What you get
When you put money into this plan, you can receive a tax deduction on those contributions. This means the money you save can help reduce the amount of tax you owe.
What it costs you
Using this plan requires a long-term investment commitment. You are setting aside your money with the intention of not using it for a significant period.
The catch to know
The most important thing to remember is that your funds are generally locked away. You typically cannot access the money until you reach retirement age.
How to apply
- Review your long-term financial goals to ensure you can commit the funds.
- Consult with a financial advisor or your bank regarding contribution limits.
- Set up your account through a financial institution or authorized provider.