Registered Products: Everything you need to plan your retirement

RRSPs were introduced to allow Canadians to save for retirement in a tax-efficient manner. Currently, 18 per cent of earned income up to the annual contribution limit can be contributed to an RRSP and deducted from total income. Any unused contribution room is carried forward to be used in future years. The tax on RRSP contributions, and on the income earned within RRSPs, is deferred until funds are withdrawn from the plan. Since income during retirement can often be much lower than during an individual’s working years, withdrawals from a registered plan are generally taxed at a lower rate than would otherwise apply.

For more information, contact a BMO Nesbitt Burns Investment Advisor at a branch near you. Or, to have an Investment Advisor contact you, complete this form.

For RRSP essentials and product details, visit www.bmo.com.

Selecting the right retirement income option is one of the most important financial and estate planning decisions you'll make. Especially today, when statistics show that Canadians are living longer, healthier lives. It's important to make choices that not only protect your savings but ensure that the purchasing power of your money lasts for decades.

A Registered Retirement Income Fund (RRIF) allows you to continue to earn tax-deferred income on a significant portion of your retirement assets while providing you with the flexibility to increase your withdrawal at any time. For these reasons, RRIFs are the RRSP maturity option of choice for many Canadians.

A RRIF is very much like an RRSP in reverse. While an RRSP helps you save for retirement, a RRIF is designed to provide an annual income in the form of withdrawals from the plan during your retirement.

Like an RRSP, the assets in the RRIF continue to be tax sheltered until withdrawn. With a RRIF you continue to control how your funds are invested and have access to all the same investments you had with an RRSP.

For more information, contact a BMO Nesbitt Burns Investment Advisor at a branch near you. Or, to have an Investment Advisor contact you, complete this form.

For RRIF essentials and product details, visit www.bmo.com.

The Tax-Free Savings Account (TFSA) was introduced in 2009 and offers Canadians a unique and flexible planning opportunity to save for their investment goals. Your contributions to a TFSA are not tax deductible for income tax purposes, however your savings grow tax-free inside your account. In addition, withdrawals from a TFSA are tax-free as there is no tax payable when you make a withdrawal from your TFSA and the amount withdrawn in the current year will be added to your contribution room at the beginning of the next year.

For more information, contact a BMO Nesbitt Burns Investment Advisor at a branch near you. Or, to have an Investment Advisor contact you, complete this form.

For TSFA essentials and product details, visit www.bmo.com.

An RESP is a great way to save for a child's post-secondary education. Essentially, it's a tax deferred savings plan that you open on behalf of a future post-secondary student. While RESP contributions are not tax deductible, the income earned on contributions compounds on a tax-deferred basis.

You may withdraw RESP contributions, with no income tax consequences - only the accumulated income and any Canada Education Savings Grant in the plan is taxable. When money is eventually withdrawn from an RESP to pay for education-related costs, the income and grant is taxed in the hands of the beneficiary, not the contributor. If the student withdraws the money over a few years, the income should attract little or no tax.

For more information, contact a BMO Nesbitt Burns Investment Advisor at a branch near you. Or, to have an Investment Advisor contact you, complete this form.

For RESP essentials and product details, visit www.bmo.com.