RSL Meaning and
Definition
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RSL stands for "Registered Savings Loci" and refers to a financial instrument available in Canada. It is a type of savings plan that allows individuals to contribute money to their account and earn tax-free interest on those funds. The RSL is registered with the Canada Revenue Agency (CRA), which means it offers certain tax advantages.
The main purpose of an RSL is to encourage Canadians to save for retirement. The funds invested in an RSL are usually locked-in until retirement, and early withdrawals can result in penalties. Unlike a regular savings account, the contributions made to an RSL are tax-deductible, which means individuals can reduce their taxable income by the amount they contribute.
Contributions made to an RSL are not subject to taxes on any interest or investment income earned within the account. This tax-free growth can help individuals accumulate a larger retirement savings fund over time. However, once retirees begin to withdraw funds from their RSL, the withdrawals become taxable as income.
In summary, an RSL is a regulated savings plan designed to promote retirement savings among Canadians. It offers tax advantages in the form of tax-deductible contributions and tax-free growth. However, withdrawals from an RSL are subject to income tax.
Common Misspellings for RSL
- 5sl
- 4sl
- trsl
- rtsl
- 5rsl
- r5sl
- 4rsl
- r4sl
- rzsl
- rszl
- rxsl
- rsxl
- rwsl
- rswl
- rskl
- rslk
- rsol
- rslo
- rrsl
- rssl
- rsll
- r sl
- rs l
- raslu
- resol
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