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 | How Does This Impact My Taxes?
Reduce your taxes every paycheque!
Contributing to a Registered Group Savings Plan allows you to receive an Instant Tax Refund.
By contributing through payroll deduction to a Registered Group Savings Plan, you can reduce the amount of tax deducted from your paycheque and effectively pay yourself first instead of the government. The chart below illustrates the advantage of contributing the same amount to a Registered Group Savings Plan over a Registered Individual Plan.
Defer paying taxes until withdrawal!
In a Registered Group Savings Plan you don't pay taxes on your savings or investment earnings until retirement, therefore earnings are compounded! In addition, after retirement you will probably pay less tax on earnings because you'll likely be in a lower tax bracket.
Assumptions: Deposits of $100 per month or $1,200 per year with a 40% tax bracket, compounded annually, at an 8% interest rate.
Why choose a Group Savings Plan?How will I pay for my retirement?When should I start saving?How does this impact my taxes?What are the contribution limits? |
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