Registered Pension Plan (RPP)
A form of a trust that provides pension benefits for an employee of a company upon retirement. RPPs are registered with the Canada Revenue Agency. The employee and employer, or just the employer make contributions to this retirement plan until the employee leaves the company or retires. Investopedia Says:
Contributions to an RPP are tax deductible for both the employee and the employer. Contributions to the plan and gains on underlying assets are tax deferred, so the funds are taxed when they are withdrawn from the plan. Related Terms:
Canada Pension Plan
Canadian Revenue Agency - CRA
Defined-Benefit Plan
Defined-Contribution Plan
Pension Plan
Registered Retirement Income Fund - RRIF
Registered Retirement Savings Plan - RRSP
Tax Shelter |