RSP Contributions

Limited Partnership units themselves are not eligible for contribution to RSP’s or RIF’s. This said, mutual fund shares received, on a tax deferred basis, from a roll-over of the limited partnership assets to a mutual fund are RSP and RIF eligible.

Upon contribution of such mutual fund shares to an RSP, investors would trigger capital gains tax (50% of the rate of tax on income from employment, business or property) on the amount of the contribution and would correspondingly receive a tax deduction for the amount of the contribution that would be deductible at employment income rates. Investors can benefit from the spread between the rate of tax applied to capital gains versus that applied to income from employment, business or property.

What is an RSP?

A Retirement Savings Plan (RSP) is a tax-sheltered investment vehicle that provides you with a means of saving for retirement. Contributions to an RSP (by way of mutual fund shares or other) result in a tax deduction, and the income earned in the plan compounds on a tax-deferred basis. RSP-eligible investment options include fixed-income securities, equities, mutual funds, private company shares and more.