# RRSP for self employed



## akka (Feb 22, 2010)

Hi

In USA similar to RRSP is 401K,wehre employers may match the contribution on employees Can it be done with RRSP esp. for self employed peple?

I guess I can contribute 18% as employee for myown company,but can company can contrbute for me?

If possible what will be the steps needed?

Also can this contribution be limited to Director level only?

Appreciate help!
AK


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## Cal (Jun 17, 2009)

I dont think you can do that exactly.

You should talk with your accountant, but if you were to set up a corporation to run your business through, you might be able to do the contribution match thing. Not sure. But I do know that with the corp you could set up a IPP, Independant Pension Plan, with the help of your accountant.

It is worth looking into.


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## akka (Feb 22, 2010)

Thanks!Actually I am already incorporated.I will check for IPP

One more question,I am big fan of ING but there site shows RSP accounts and NOT RRSP.are they not same thing?I called ING they say its' same but on googling the difference it says with RSP I can't take the tax deference benefits.Little confused.Please advise!

Appreciate


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## young_gun (Jan 20, 2010)

Hi,

I googled "rrsp vs rsp". The first link was this.

http://www.differencebetween.net/business/difference-between-rsp-and-rrsp/

Goes into some good details on the differences. Hope it helps.


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## MoneyGal (Apr 24, 2009)

Blerg. That's a pretty terrible article, full of strange and misleading statements (such as _RRSP includes your pension plans and life insurance scheme. So when you opt for RRSP account you can manage your pension, life insurance, and retirement savings plans together_).

Or _Many banks offer both RSP and RRSP to its customers. But some banks offer only either of these plans_.

I've never, ever heard of a bank offering a "retirement savings plan" that is not a "registered retirement savings plan." 

It may well be that such plans exist. For sure the term "RSP" can be used to cover everything from buying an investment property to buying an annuity and an entire range of things in the middle. However, if you open an "RSP account" at a bank, I bet dollars to donuts it is an RRSP. I'm pretty certain that every chartered bank in Canada offers RRSP accounts. 

Also: you can't hold a true pension in an RRSP account. And life insurance is not an investment; this is also not held in your RRSP account (or your "RSP" account).


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