Related Articles & FAQ's

Employee Group Retirement

Articles related to Employee Group Retirement

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FAQs

Frequently asked questions related to Employee Group Retirement

When can employees access funds in a Group Retirement Plan?

Access to funds usually aligns with retirement age regulations in Canada, though some plans may allow earlier access under specific circumstances like financial hardship or health issues.

What tax benefits are associated with Group Retirement Plans?

Contributions to a Group Retirement Plan are typically made with pre-tax dollars, reducing taxable income. Additionally, investment growth in the plan is tax-deferred until withdrawal.

What happens to my Group Retirement Plan if an employee changes jobs?

The employee will have several options:

  1. Leave the funds in the current plan;
  2. Transfer them to a new employer's plan; or
  3. Move them to a personal retirement account, or withdraw the funds (which may have tax implications).
Can I manage my own investments within a Group Retirement Plan?

Yes, many plans offer a range of investment options and allow employees to choose how their contributions are invested, though the options are typically curated by the plan provider.

Are employer contributions to a Group Retirement Plan mandatory in Canada?

Employer contributions are not mandatory in Canada, but many employers choose to contribute as a benefit to attract and retain employees. The structure of contributions varies by plan.

How does a Group Retirement Plan differ from a personal retirement plan?

Group Retirement Plans are set up by employers and often include contributions from both the employer and employee. Personal retirement plans, like RRSPs, are individually managed and funded solely by the individual.

Still have questions?

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