Archived - Harper Government Helping and Encouraging Canadians to Accumulate Savings for Retirement
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February 27, 2014 – Ottawa, Ontario – Department of Finance
Minister of State (Finance) Kevin Sorenson today highlighted how the Government of Canada continues to help Canadians accumulate savings for retirement through tax-assisted programs, such as Registered Retirement Savings Plans (RRSPs). The RRSP contribution deadline for 2013 is March 3, 2014.
- RRSPs are voluntary, individual, defined contribution savings plans. Employers may provide a “group RRSP” for employees, and may remit a share of contributions on behalf of their employees.
- Contributions to RRSPs are deductible from income for tax purposes and investment income earned in these plans is not subject to income tax. Payments and withdrawals from these plans are included in income for tax purposes. The deferral of tax provided on RRSP savings encourages and assists Canadians to save in order to meet their retirement income objectives.
- The Tax-Free Savings Account (TFSA), introduced by the Harper Government in 2009, is a tax-assisted general-purpose savings account that may be used for any savings purpose, including saving for retirement. TFSA contributions are not deductible; however, investment income and withdrawals are tax-free. In addition, neither TFSA investment income nor withdrawals affect eligibility for federal income-tested benefits and credits, such as Old Age Security and Guaranteed Income Supplement benefits.
“With tax season well upon us, and the deadline for RRSP contributions coming on March 3, Canadians should be aware that the Government of Canada is providing significant tax assistance to help ensure that their hard-earned dollars can be invested for retirement, and grow and accumulate, on a tax-efficient basis. RRSPs provide significant tax assistance on savings and Canadians may wish to consider taking advantage of these plans to help achieve their retirement income goals.”
- Kevin Sorenson, Minister of State (Finance)
Office of the Minister of State (Finance)
Department of Finance