RRSP

The Registered Retirement Savings Plan (RRSP) is a tax-deferred investment account designed to help Canadians save for retirement.

Contributions to an RRSP are tax-deductible, reducing your taxable income in the year they’re made, while investments grow tax-free until withdrawn.

Withdrawals are taxed as income in the year it is withdrawn, typically at a lower rate in retirement. Each year, you can contribute up to 18% of your earned income from the previous year, up to an annual maximum set by the government, with unused room carried forward.

RRSPs can hold a variety of investments, such as stocks, bonds, ETFs, and mutual funds. In addition to retirement savings, the RRSP also supports programs like the Home Buyers’ Plan (HBP) and Lifelong Learning Plan (LLP), making it a versatile tool for long-term financial planning.