FAQ Category: General

What is vesting?

Vesting gives a plan member ownership of the employer’s DPSP contributions.  A DPSP can have a maximum vesting period of two years from the plan enrollment date. If an employee terminates their employment before they vest in the plan, the account value will be forfeited and returned to the employer, and the member’s RRSP contribution …

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What is a DPSP?

A Deferred Profit Sharing Plan (DPSP) is a workplace savings program that many businesses use for employee incentives, or to help them save for retirement. Only employers can contribute to a DPSP. The annual contribution limit is either 18% of the employee’s annual earned income or half of the money purchase limit (up to $15,390 …

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What is guaranteed lifetime income?

Guaranteed lifetime income is an annuity offering that can help protect your retirement finances from some of the key risks that arise in retirement, including longevity and market risks. A life annuity is a form of life insurance because it is paid based on the life of the insured person, providing guaranteed regular income in …

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What is an RRSP?

The Canadian government introduced the Registered Retirement Savings Plan (RRSP) in 1957 as a way for Canadians without employer-sponsored pension plans to save money for retirement. When you add funds to save through an RRSP account, you are making contributions from pre-tax income (meaning the amount of your contribution is deducted from your current income …

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What is a TFSA?

The Tax-Free Savings Account (TFSA) was established by the Canadian government in 2009 as a “flexible savings vehicle” for Canadians. When you add funds to a TFSA, you are making contributions from income you’ve already paid tax on. Your contributions grow tax-free while they’re in the TFSA account, and you aren’t taxed on any withdrawals. …

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How do I contribute to my TFSA and RRSP online?

Common Wealth is a group retirement plan that offers a group Tax-Free Savings Account (TFSA) and a group Registered Retirement Savings Plan (RRSP). When you enroll in the plan, you can choose how much of your contributions goes towards one or both accounts.

What are the contribution limits?

General contribution limits for RRSPs, TFSAs and DPSPs are set by the government and can be found here. You can view your individual contribution limits by logging into your CRA My Account or by looking on your latest notice of assessment under “Available contribution room for [YEAR].”  If your plan includes a DPSP, contributions made on your behalf …

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