Saving in the Long and Short Term
Non-Registered Savings Plans are designed to help individuals save for short-term and/or long-term goals (such as education, vacation or purchasing a home) or to supplement retirement income.
What is a Group Non-Registered Savings Plan (NRSP)?
- An NRSP is usually offered to accommodate “excess” member contributions – those amounts above Canada Revenue Agency’s contribution limits to registered plans, such as an RPP or an RRSP.
- A Group NRSP is an easy way for plan members to continue to build savings for their retirement by contributing through payroll deductions or lump-sum contributions.
- Plan members are immediately entitled to all contributions in the plan. Plan sponsors can choose to contribute to an NRSP on an employee’s behalf.
- Contributions from a plan sponsor are considered taxable income for the member.
The Majdoub Group offers a Group NRSP to supplement a Group Registered Pension Plan or a Registered Retirement Savings Plan. The chart below highlights some of the Group NRSP details.
The plan sponsor has control over eligibility requirements.
The plan sponsor has control and flexibility over contribution levels. Both plan sponsor and members are eligible to contribute.
No contribution limits.
Members can withdraw from the plan at anytime if plan provisions allow. Since contributions are taxed at source, taxes are not withheld when funds are withdrawn.
Vesting is immediate for all contributions. There are no locking-in rules.
Members typically have control over investment decisions, however the plan sponsor selects investments available in the plan.
There are no requirements associated with NRSPs. Plan members can withdraw from the plan at any time.
If a beneficiary is named, any death benefit is paid to the beneficiary.