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Registered plans

Registered plans in Canada include the TFSA, RRSP, RRIF, RESP and RDSP.

TFSA
RRSP
RRIF
RESP
RDSP

You will see financial benefits when you open a savings plan that is registered with the Canadian government.

Your taxes can be deferred until a later date (and at a potentially lower rate), or your funds can be entirely sheltered from being taxed. With a non-registered investment account, you are required to pay taxes annually on income you earn from that account.

Tax-Free Savings Account (TFSA) 

As a Canadian, you can open a tax-free savings account to help meet your financial goals. 

Your savings will grow tax-free and you won’t pay taxes when you withdraw funds.

Benefits of a TFSA

  1. Grow your money tax-free.
  2. Pay no tax when you withdraw funds.
  3. Save for short-term goals with flexibility.

How do I lower taxes on my investment income?

Leverage government-sponsored savings plans to reduce your taxes.

Features of a TFSA

  • You don’t pay taxes on investment income.
  • You can contribute up to $6,000 annually and carry forward unused contribution room.
  • You can withdraw money tax-free and then can re-contribute any amounts you withdraw from your TFSA in the following year.
  • You can invest your TFSA funds in stocks*, bonds*, mutual funds* and term deposits.

* Disclaimer:  Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.

Registered Retirement Savings Plan (RRSP)

Reduce your taxable income and grow your investments tax-free with a RRSP.  

Opening a RRSP is a good first step in preparing for your retirement.

Benefits of a RRSP

  1. Defer taxes until your marginal tax rate is lower.
  2. Save taxes by reducing your taxable income.
  3. Take advantage of income splitting.

How do I plan for retirement?

It's never too early to start planning for your retirement. Set yourself up to enjoy your later years by taking steps in your 20s and staying focused on your retirement goals through your 30s, 40s, and 50s. 

Features of a RRSP

  • You can contribute up 18% of your previous year’s income, up to a maximum of $26,500 (in 2019).
  • Contributions you make in the year, or the first 60 days of the following year, can be deducted from the year’s taxable income.
  • By December 31st in the year in which the RRSP holder turns 71, the RRSP must be collapsed, transferred to an annuity or a registered retirement income fund (RRIF).
  • You may name a beneficiary for your RRSP in case you should pass away.
  • You can choose to contribute to your own RRSP or your spouse’s plan (to maximize your contribution limits).
  • You can borrow from your RRSP tax-free for your first home or if you are returning to school.
  • You can invest funds from your RRSP into stocks*, bonds*, mutual funds* and term deposits.

* Disclaimer:  Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.

Registered Retirement Income Fund (RRIF)

You’ve worked hard and saved your money. It's time to transfer your savings to a RRIF and start enjoying your retirement.

A registered retirement income fund (RRIF) is a government-sponsored plan to which you can transfer your RRSP (or other government savings plans). Having a RRIF allows for tax-efficient growth of your savings and allows you to generate a predictable income stream during your retirement.  It also allows you to continue to shelter your RRSP transfer your RRSP.

You can convert your RRSP to provide income at any time, but you’ll need to close or convert your RRSP no later than the year you turn 71.

When you are ready to convert your RRSP, you’ll have three basic options:

  1. ​Withdraw your funds from the RRSP in a lump sum. It is important to note with this option the total amount of your RRSP will be included in your taxable income for the year.
  2. Convert your RRSP to an annuity. An annuity provides a stream of income into the future.
  3. Convert your RRSP to a RRIF. A RRIF provides tax-deferred growth. While it is similar to a RRSP, a RRIF requires that you withdraw a minimum amount each year.

What are annuities?

Annuities enable you to receive guaranteed life-long income once you leave the workforce.

Benefits of a RRIF

  1. Save money on taxes.
  2. Have peace of mind with advice on how to structure your income flows.
  3. Set up convenient automatic withdrawals to create an income stream.

Features of a RRIF

  • Allows for tax-efficient growth of your savings as any investment income is sheltered from tax.
  • Creates a steady income flow from retirement savings.
  • Eligible for a full array of investment options including term deposits, savings accounts, mutual funds, exchange traded funds, stocks and bonds*.
  • Follows a government schedule of minimum withdrawal requirements (the percentage required to withdraw increases as you get older).
  • Gives you the option to increase, decrease or change your income amount any time you choose.
  • Requires that you pay tax on the money you withdraw from your plan each year.

Ready to retire?

Work with G&F to set up your retirement income plan.

We understand this is a significant life change for you. As a member of G&F Financial Group, you have access to a Retirement Planner who can help you with the decisions you need to make. Our accredited Retirement Planners, have gone through the retirement process themselves. They sell no products. They are there to provide advice to you—this is one of the many benefits of being a member.

Our Retirement Planner can help you decide how best access your government benefits, how to replace your health and dental plans, when and how to convert your savings into retirement income, calculate your total retirement income from all sources and help you walk through some of the realities and lifestyle changes you may face.  

Our Retirement Planner can develop a comprehensive retirement plan and consolidate your retirement savings from all sources. This will give you an efficient way to manage your income through retirement, so you can enjoy your life beyond banking.

While the RRIF is the most common plan, there other government-sponsored plans available through G&F Financial Group. These include:

  • Life Income Fund (LIF)
  • Locked-in Retirement Income Fund (LRIF)
  • Restricted Life Income Fund (RLIF) 

* Disclaimer:  Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.

Registered Education Savings Plan (RESP)

Investing in a RESP will help you pay for post-secondary education.

A registered education savings plan is a government-sponsored plan which helps you to save for a child’s post-secondary education. A RESP has the benefit of tax-deferred growth and provincial and federal government grants to top up your savings.  All you need to start a RESP is your child’s social insurance number. 

Start saving early to maximize your savings and get a head start on helping tackle the high costs of education.

How do I pay for school?

A great way to save for a child’s education is to set up a RESP through the Federal Government.

Benefits of a RESP

  1. Earn more by sheltering earnings on investments from taxes.
  2. Save more with eligible government grants.
  3. Choose this convenient way to start planning for your child’s—or grandchild’s—education.

Features of a RESP

  • Contribute up $50,000 per child.
  • RESP contributions are not tax-deductible but income earned grows on a tax-deferred basis.
  • RESP withdrawals are eligible for wide range of post-secondary qualifying programs.
  • Option to open as a family plan or individual plan.
  • Savings grow tax-free as there are no taxes payable on the money earned in an RESP until it’s withdrawn.  When withdrawn, the earnings are taxed in the beneficiary’s name.
  • Receive provincial and federal grants. These are added to your savings and do not impact the contribution room in your RESP.
  • Eligible for a full array of investment options including term deposits, savings accounts, mutual funds, exchange traded funds, stocks and bonds.* 

* Disclaimer:  Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.

Registered Disability Savings Plan (RDSP)

For those who are faced with the complex challenges of living with a disability, a RDSP can provide future security and peace of mind. 

A registered disability savings plan (RDSP) is a government-sponsored plan that allows Canadians with disabilities and their families save on a tax-deferred basis. 

Choose a RDSP and have savings in place to meet your future medical and living costs. 

What are living benefits?

Living benefits insurance typically covers three types of insurance protection: disability, critical illness, and long-term care.

Benefits of a RDSP

  • Save more with government grants and bonds that accelerate your savings.
  • Earn more by sheltering earnings on investments from taxes.
  • Have peace of mind knowing your loved ones will have future financial security.

Features of a RDSP

  • No annual contribution limit.
  • You can make contributions up until the end of the year in which the beneficiary turns 59.
  • RDSP contributions are not tax-deductible, but income earned grows on a tax-deferred basis.
  • You can make one-time or annual withdrawals.Your RDSP is eligible to receive government assistance with matching grants of up to 300% with the Canada Disability Savings Grant. 
  • Your RDSP is eligible for the Canada Disability Savings Bond.
  • The Canada Disability Savings Grant is eligible to be paid into the RDSP up to the year in which the beneficiary turns 49.  
  • Anyone can contribute to the RDSP for a beneficiary.
  • There are no restrictions as to what the withdrawals can be used for, as long as the funds benefit the beneficiary.
  • Available investments include mutual funds.*

* Disclaimer:  Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.

Interested in a TFSA or RRSP?

Talk to a G&F expert about which one is right for you.

Meet with us in person.

How do I start investing?

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