RRSP

[VictorCA]

Hi all,

I've finally found a job, praise God! I'm filling out the documentation they sent me and one of it pertains to an "RRSP," which I understand is a retirement plan. There's an option to op out of the RRSP. What would you guys advise me to do as a new immigrant? It's not a high-paying job, so my thinking was to opt out of the RRSP so I can receive more money in my paychecks at first, and then think about enrolling next year or so.

What do you guys think?

 

[andy6835]

Hi all,

I've finally found a job, praise God! I'm filling out the documentation they sent me and one of it pertains to an "RRSP," which I understand is a retirement plan. There's an option to op out of the RRSP. What would you guys advise me to do as a new immigrant? It's not a high-paying job, so my thinking was to opt out of the RRSP so I can receive more money in my paychecks at first, and then think about enrolling next year or so.

What do you guys think?

Congratulations.!
I dont see any reason to opt out of it.
Employer and employee will contribute certain amount.( 2-3%). There is locking period for it untill you are with that employer. I dont remember exact terms but as far as I remember, no drawback( except retaining your few bucks for future). if you change job, you can close that RRSP & withdraw your portion of money. To get employer portion, you need to spend certain time with them. Only after retirement you can own those money without tax liability else you need to pay tax as those withdrawal will count as income in that particular year.

so i would say go for it. it is not much. opt for a minimum contribution. ( may b 25$/month).

 

[APPNOV2014NY]

Also RRSP is pre-tax contribution and it will bring down your taxable income.

 

[bubulici]

If they match your contribution, you would basically lose money they would otherwise give it to you. The choice in that case should be a no brainer!

 

[NetMecca]

I agree with the previous comments.

If your employer contributes I would recommend you do the same, up to the value they contribute.

Free money.

Also the sooner you start the better off you will be when the time comes.

 

[VictorCA]

Thank you all for your replies. I guess I'll first have to see if they do contribute. The whole onboarding process was online and I didn't have an option to review the details of the plan. I've already sent HR an e-mail asking for details so I can decide whether to enroll or not.

Thanks again!