RRSP – Registered Retirement Savings Plan

The registered retirement savings plan (RRSP) is a flexible savings tool that has a double benefit: your contributions provide you with a tax deduction and your investment income accumulates in a tax shelter.

Features and benefits of the RRSP

  • Each year, you can contribute a maximum amount equal to 18% of your taxable income or, if you have a high income, the ceiling set by the government.
  • You can defer unused contribution rights to subsequent years.
  • The amount of your contributions is deducted from your taxable income, which could entitle you to a tax refund.
  • Your investment income is only taxed when you withdraw it from your RRSP.
  • You can convert your RRSP into a registered retirement income fund (RRIF) or another retirement income, at the latest on December 31 of the year of your 71st birthday.