An RRSP (Registered Retirement Savings Plan) is a Canadian government-registered savings account designed to help individuals save for retirement in a tax-efficient way.
| Feature | Details |
|---|---|
| Purpose | Save for retirement while deferring income tax. |
| Contributions | Tax-deductible (they reduce your taxable income). |
| Investment Growth | Grows tax-free until withdrawal. |
| Withdrawals | Taxable as income when taken out. |
| Contribution Room | 18% of previous year’s income, up to an annual limit (e.g., $32,490 in 2025). |
| Deadline | 60 days after year-end (e.g., March 3, 2025 for 2024 tax year). |
| Who can open | Canadian residents with earned income and a SIN number. |
| Feature | RRSP | TFSA |
|---|---|---|
| Tax on Contributions | Tax-deductible | Not tax-deductible |
| Tax on Growth | Tax-deferred | Tax-free |
| Tax on Withdrawal | Fully taxed | Tax-free |
| Best For | Retirement, high-income earners | Short/long-term savings |
Contact a licensed insurance advisor to learn more and open your RRSP (Registered Retirement Savings Plan).
