RRSP (Registered Retirement Savings Plan)

A Registered Retirement Savings Plan (RRSP) is a registered savings account in Canada that is designed to help you save for retirement.

Contributions to an RRSP are tax-deductible, and the investment income earned within the RRSP is tax-sheltered until it’s withdrawn in retirement.

You can contribute to an RRSP each year up to a certain limit, based on your earned income. The money in your RRSP can be invested in various ways, such as mutual funds, stocks, bonds, and guaranteed investment certificates (GICs).

When you withdraw money from your RRSP in retirement, it will be taxed as income.

• Related Terms: TFSA, Retirement Savings, Tax Deduction, Investment