Group registered retirement savings plans (group RRSPs)
A group RRSP is like a collection of individual RRSPs to which contributions are generally made through payroll deductions. Its purpose is to facilitate contributions to individual RRSPs.
The employer determines who contributes to a group RRSP:
- the employees only
- the employer only, through a salary increase that is withheld and paid into the group RRSP
- the employees and the employer.
Note that business owners and their relatives can contribute to a group RRSP if they are employees of the business and receive a salary.
If you contribute to a group RRSP, you get an immediate tax savings. In addition, if necessary, you can use amounts in a group RRSP for the Home Buyers' Plan (HBP) and the Lifelong Learning Plan (LLP) .