EN
Help Your Employees Save for Their Financial Goals
A GIA is a collection of individual investment accounts that employees can contribute to directly from their payroll, helping them save for a vacation, a down payment, home renovations and more.
Call an RBC Group Advantage Specialist
1-800-835-3855
Have an RBC Group Advantage Specialist Contact You
Email NowIs This Plan Right for You?
This plan may be an appropriate choice if you:
- Are a business that wants to complement/provide more financial benefits on top of a GRSP/DPSP
- Are looking to help employees save for short term goals
Key Features
- Investment Options: Investment options are selected by employees based on choices available within the plan.
- Spousal Plans: Only personal plans are allowed with a GIA.
- Contribution Sources: Contributions can be made by both employees and/or employers.
- Contribution Limits: There is no contribution limit for a GIA.
- Sponsor Tax Implications: Employer contributions are considered part of an employee’s salary, are tax deductible as a salary expense and are subject to payroll taxes such as CPP and EI.
- Member Tax Implications: Deductions are from after-tax dollars and no tax receipts are issued.
- Regulation: CAP Guidelines define sponsor, member and administrator responsibilities.
- Member Withdrawals: Funds can be withdrawn without tax implications.
- Restrictions or Vesting: Vesting is not allowed for a GIA. However, the plan can be established with a notification of withdrawal, which is intended to inform the sponsor if an employee withdraws funds. Notification of withdrawal requires employees to complete a withdrawal form and have it signed by the sponsor prior to a withdrawal being made. Sponsors may choose to suspend matching contributions for a period of time if funds are withdrawn from the plan.
- Termination and Retirement: Assets can be taken as a cash withdrawal.