Group RRSP

Botica Financial Group offers a wide array of group investment products for firms, associations, unions as well as other organizations.

A Group RRSP comprises the individual RRSP’s of persons who are members of one group. RRSP contributions are retained in the salary and the administration is centralized. The policy’s administrator is not obliged to contribute to a group RRSP.

Group RRSP’s provide its participants with advantages that would be practically unavailable to them individually, such as favourable interest rates and lower minimum payments.

Benefits for a company or an association :

  • Flexible policy philosophy – The policy can be used on its own or in conjunction with a deferred profit-sharing plan (DPSP).
  • Extensive admissibility restrictions – any Canadian resident aged 71 years of age or less can participate – including the shareholders, the sole owner and the associates whose participation to other policies, advantageous from a fiscal point of view, can be subject to certain restrictions.
  • Tax relief – The contributions and administrative fees are tax deductible for the employer. However, these sums must figure in the participants’ T4.
  • It is not mandatory for the employer to contribute.

Benefits for an employee or a participant :

  • A practical and disciplined savings plan. A simple and methodical way to plan for retirement.
  • Immediate tax savings- Revenue Canada authorizes the deduction of wage contributions from the non-taxable income.
  • The advantage of immediate allocation and accrued interest. The efficiency of accrued interests on frequent and regular deposits (bi-monthly or monthly) allows the participants’ deposits to generate immediate interest. Upon retiring, the participants will have accumulated larger sums than if they had contributed to a basic individual RRSP policy at the end of each year.
  • Evened-out investment risk – A fixed sum invested regularly over a long period reduces the investment risk by spreading out the investment’s purchasing cost.
  • Collective buying power
  • Income splitting – Spousal contributions are allowed in order for the participants to benefit from advantageous tax savings, even after they have taken their retirement.