Financial Services _Çô Client Services RFC126 Chapter Notes - Chapter 9: Registered Retirement Income Fund, Registered Retirement Savings Plan, Life Annuity

• School: Seneca College
• Department: Financial Services _Çô Client Services
• Course: Financial Services _Çô Client Services RFC126
• Professor: marie

Document Summary

Registered retirement savings plan (rrsp) can be terminated at any time, if it is not in a locked-in plan. Primary purpose: tax-deferred retirement savings option using before-tax dollars. Flexibility to withdraw money early and/or wait until the rrsp matures. Withdrawing rrsp before it matures: lump sum withdrawal, use rrsp savings to: Rrsp december 31st in the year they turn age 71: must terminate or convert. Example: victor was born on january 31, 1991. From an early age, his parents have taught him that saving money for his future is an important goal. Since he began working at age 14, victor has made regular deposits to an rrsp account at a local bank. Victor expects that he will always use his rrsp account to save for his future retirement. He will be able to maintain and deposit money into his rrsp account until the end of the year in which he turns age 71.