A Group RRSP is identical to an individual RRSP – only it is set up by your employer.
Four things to know about Group RRSPs
- A Group RRSP is designed to encourage you to save at work by contributing through payroll deductions.
- Both you and your employer may contribute depending on the rules of the plan.
- All contributions (both yours and your employers) are tax-deductible to you – and all investment earnings are tax-sheltered.
- Like an individual RRSP, you decide how your money is invested. Your employer will provide a range of investment options to choose from. You'll likely have fewer investment choices than you would with an individual RRSP.
Learn more about RRSPs.
If you leave your employer
Your Group RRSP money is not locked in. Once you leave your employer, your Group RRSP money can be:
- transferred to your own individual RRSP (or RRIF if you want to be receiving immediate income),
- used to buy an annuity, or
- taken in cash (it will be taxed as income in the year you receive it).
Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca
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