An RRSP is an investment account that postpones taxes on investments that earn interest. These funds are only considered income once they are withdrawn, and will be taxed at the marginal tax rate, which will be explained below.
What else do I need to know?
Anyone investing into an RRSP can deduct contributions from their income.
Basically, tax payments are delayed until you withdraw your money. The amount you pay in taxes will normally be less later near retirement because most people won’t have as much income as they did while they worked.
If you'd like more information on taxes and RRSPs
Check out the CRA website or book time with one of the OneVest Portfolio Managers!