RRSP
What is RRSP?
An RRSP (Registered Retirement Savings Plan) is a retirement savings account with tax-deductible contributions and tax-deferred growth. It provides tax advantages designed to help you save for your retirement.
Why open an RRSP?
Tax advantages
Contributions reduce your taxable income, lowering the amount of income tax. Investments also grow tax-free until withdrawal. This allows for greater compound growth over time.
Retirement Benefits
With an RRSP, tax is deferred, so withdrawing after retirement can provide income taxed at a lower rate. This allows you to enjoy more of your retirement financially stress free.
Variety of Investments
An RRSP allows you to invest in various investment tools. This includes stocks, bonds, GICs mutual funds, and more.
How does RRSP work?
An RRSP is a retirement savings and investing vehicle for employees and the self-employed in Canada. It offers tax benefits to encourage retirement savings, such as tax deductions for contributions made.
Your RRSP contribution limit for 2024 is 18% of your 2023 earned income or $31,560 (whichever is lower), plus any unused contribution room from previous years. An RRSP can include a variety of investments like stocks, bonds, GICs, and
Who can open one?
Canadian residents with a Social Insurance Number (SIN) who are at least 18 years of age.
There is no minimum age to open an RRSP, but you must be under 71 years of age.
Tax Treatment
Tax-Free?
Tax-Deductible?
Tax-Deferred?
Numbers to Know
FHSA vs RRSP vs TFSA
FHSA | RRSP | TFSA | |
|---|---|---|---|
Contributions can be deducted from income | |||
Withdrawals DO NOT have to be paid back into account |
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Note: that there are several types of RRSP accounts that you can open. This includes self-directed and spousal accounts. Contact us to see what works best for you!