An RRSP is a government-registered investment account that offers tax benefits for retirement savings in Canada.
A Registered Retirement Savings Plan (RRSP) is a powerful financial tool designed to help Canadians build their retirement nest egg while providing immediate tax advantages. When you contribute to an RRSP, the money is tax-deductible from your current income, allowing you to reduce your taxable income for that year.
Key benefits of an RRSP include:
- Tax-deferred growth on investments until withdrawal
- Immediate tax deductions on contributions
- Investment flexibility with options for stocks, bonds, mutual funds, and GICs
- Contribution room of up to 18% of your previous year’s earned income