A Group RRSP is simply a collection of individual RRSP’s where employees make contributions through regular payroll deductions on a pre-tax basis. Upon completing the application form and deciding how much you want to contribute, you employer deducts that amount from your pay in pre-tax dollars as permitted by the Canada Revenue Agency and forwards it to the financial organization selected by your employer as the administrator for the group plan. Your contribution is then deposited into your own personal RRSP at the financial organization and invested as you specify.
If you would like to set-up a group RRSP at your place of business or want more information please contact us.
Robin Muir, CFP®, CLU®, CH.F.C.