RRSP – Registered retirement savings plan

The registered retirement savings plan is a good way to start saving today for retirement. The RRSP makes an excellent tax shelter for persons aged 71 or younger with an employment income who want to make their money grow.

Your capital and accumulated investment income will be taxable only upon withdrawal from the plan.

Advantages of an RRSP

An RRSP is the most advantageous savings plan from a tax perspective. It allows you to:

  • Grow your assets in tax-free investments in the long term according to predetermined contribution limits.
  • Deduct all your contributions from your taxable income.
  • Use your unused contribution room each year.
  • Use accumulated funds to purchase or build a home or finance a return to school.
  • Transform your RRSP into an RRIF (registered retirement income fund) or any other retirement income vehicle upon retirement, or at the latest before December 31 of the year you turn 71.