Canadian Registered Retirement Savings Plan

A Canadian Registered Retirement Savings Plan (RRSP) is a tax-deferred investment account designed to help individuals save for retirement. Contributions to an RRSP are tax-deductible, meaning they reduce taxable income in the year they are made, and investment growth within the account accumulates tax-free until withdrawal. The plan is registered with the Canada Revenue Agency, and account holders can invest in various eligible assets such as stocks, bonds, and mutual funds. While withdrawals are subject to income tax, the plan encourages long-term savings by offering tax advantages and typically results in lower tax rates during retirement when income is reduced.