Group RRSP

It’s a group savings plan created by an employer with individual benefits for each employee. Usually, the employee and the employer can both contribute to the plan, according to specified limits.

Advantages of a group RRSP

Although employer contributions are considered taxable income for the employee, the employee can obtain a tax deduction up to the maximum amount allowable for an RRSP, as shown on the employee’s federal notice of assessment for the previous calendar year.

The employer contribution will be tax deductible as salary would be.