Canadian Banks | Forums | Terms of Use

Welcome to the Canadian Financial Forums forums.

You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!

If you have any problems with the registration process or your account login, please contact contact us.

Go Back   Canadian Financial Forums > Canadian Financial Forums > Retirement, RRSP & CPP

Reply
 
Thread Tools Display Modes
  #1  
Old 11-26-2008, 04:53 PM
canfra canfra is offline
Junior Member
 
Join Date: Nov 2008
Posts: 8
Default CPP question

I am Canadian living in France for 5 years now. I have some RRSP. If I return to Canada am I eligible for CPP when I retire?
Reply With Quote
  #2  
Old 11-26-2008, 07:22 PM
trent trent is offline
Senior Member
 
Join Date: Jun 2008
Posts: 387
Default

RRSP and CPP are completely different things. RRSP stands for Registered Retirement Savings Plan, while CPP is Canada Pension Plan.

The RRSP allows you to put money aside for retirement and at the same time it gives you a tax break on your income tax. The money you contribute in your RRSP account are tax deductible up to certain level. The good thing is that the money in your RRSP can grow tax free until you start taking money out of the account. Contrary to popular believe, you can withdraw money from your RRSP account at any time even before you reach a retirement age, however when you withdraw you have to pay taxes on the money.

Almost every Canadian citizen older than 18 who earns a salary must contribute to Canada Pension Plan. The CPP contributions are split between you and your employer, and unfortunately self-employed Canadians are responsible for contributing the entire CPP amount.
__________________
No debt
Reply With Quote
  #3  
Old 11-27-2008, 02:56 PM
Steven Steven is offline
Senior Member
 
Join Date: Jul 2008
Posts: 139
Default

Thanks Trent!

This is a very good explanation of the differences between CPP and RRSP. Do you know how much will be the taxes if I withdraw certain amount from my RRSP before retirement? Are there any penalties on top of the taxes you have to pay for doing that?
Reply With Quote
  #4  
Old 11-28-2008, 03:58 PM
trent trent is offline
Senior Member
 
Join Date: Jun 2008
Posts: 387
Default

Whatever you withdraw from RRSP, is just added to your personal income for the year and you will have to pay personal income tax on it as with any other personal income. I don't think there are any penalties (confirm this with your accountant), however when you withdraw from RRSP certain certain percentage of that money goes directly to tax, and then when you file your tax return for the year you make adjustments according to what has been already paid.
__________________
No debt
Reply With Quote
  #5  
Old 12-01-2008, 03:04 PM
Steven Steven is offline
Senior Member
 
Join Date: Jul 2008
Posts: 139
Default

Thanks for the help Trent.
I'll talk to my accountant later today, just to confirm what you said.
Reply With Quote
  #6  
Old 12-03-2008, 04:54 PM
Canadian Canadian is offline
Senior Member
 
Join Date: Jun 2008
Posts: 415
Default

You can withdraw from your RRSP accounts anytime, however you'll be taking serious tax hit if you do that, because everything is added to your personal income for the year.
__________________
Bear with me please
Reply With Quote
  #7  
Old 12-04-2008, 03:39 PM
ggonzo ggonzo is offline
Junior Member
 
Join Date: Jul 2008
Posts: 29
Default

Hi canfra,
How is in France, do you feel the economic crises that hit US and Canada?
__________________
have a good day
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT. The time now is 06:53 AM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2024, vBulletin Solutions, Inc.