Registered Plans
Registered plans provide one of the best tax-sheltering opportunities available. Registered plans are not investments. They're simply the basket in which you place your investments. The Income Tax Act (ITA) sets the limits for how much you can contribute to a registered plan. Sun Life Financial offers different registered plan types, such as:
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RRSPs - A registered retirement savings plan (both personal and group plans available) is a savings program approved under the Income Tax Act. Taxes on contributions to an RRSP and income earned by those contributions are deferred until savings are withdrawn.
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DPSPs - A deferred profit sharing plan is a profit-sharing plan under which the employer contributions are tax-deductible, but are not taxable to the employee until they are received.
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DCPPs - A defined contribution pension plan is also known as a money purchase plan. Employer contributions and employee contributions (if the plan permits them) are directed into an individual account for each employee. Contribution levels are usually expressed using a specific formula related to earnings such as 5% of annual salary. When the employee reaches retirement, the accumulated contributions and investment earnings are used to purchase a pension for the individual. No specific income level can be guaranteed with this type of plan.
These plans are often company-sponsored and offer tax-deferral opportunities. You have at least one of these plan types available to you through your company-sponsored plan.
