An RRSP (registered retirement savings plan) is an investment account designed to help you save for retirement. An RRSP is a tax-preferred account.
Why open an RRSP?
As a tax-preferred account, an RRSP allows you to save for retirement. Your contributions to your RRSP are tax-deductible. You’re only taxed when making withdrawals from your RRSP.
Who can open an RRSP?
To open an RRSP, you need to:
- Be at least 18 years old
- Have a valid SIN
- Be a resident of Canada
RRSP contribution limit
Exceeding your contribution limit can have negative tax implications. To check your contribution limit, you’ll need to log in to your CRA account.