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Registered Education Savings Plan (RESP) - A contract between
the subscriber and an organization or promoter where the subscriber makes
payments into a RESP which earn income and the promoter agrees to pay
income as educational assistance payments to one or more beneficiaries
designated in the contract.
RESP Grant - See
Canada Education Savings Grant.
Registered Pension Plan (RPP) - A pension plan accepted by Canada
Customs and Revenue Agency for registration under the Income Tax Act.
Registered Retirement Income Fund (RRIF) - A RRIF is used to provide
an ongoing minimum flow of income. Minimum withdrawal amounts are governed
by the Income Tax Act.
Registered Retirement Savings Plan (RRSP) - A vehicle used for
saving for retirement that shelters earnings from income tax. Within prescribed
limits, contributions to an RRSP are tax-deductible. Contributions and
income earned within the RRSP are tax-sheltered until they are withdrawn.
Withdrawals from the RRSP, usually at retirement, are taxed at normal
personal income tax rates. RRSPs must be collapsed at the end of the year
in which the holder (annuitant) attains age 69 and can be converted to
an annuity or a RRIF. (See also spousal RRSP)
RRSP contribution room - Also known as RRSP deduction room. Represents
the amount of room available to make RRSP contributions in any given year
on a fully tax deductable basis. RRSP contribution is limited to the lesser
of 18% of previous year's earned income and the following dollar limit
for the particular year: |
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