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RRSP

Canadian registered retirement savings account that generally allows deductible contributions and taxes withdrawals later.

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An RRSP, or Registered Retirement Savings Plan, is a Canadian retirement account that typically allows tax-deductible contributions and tax-deferred investment growth until withdrawal.

It plays a role similar to major U.S. retirement wrappers, but within the Canadian tax and retirement system.

Why It Matters

RRSPs matter because they directly shape when retirement savings are taxed.

  • contributions can reduce current taxable income

  • assets can compound inside the plan without annual tax drag

  • withdrawals are usually taxed as income later

That makes the RRSP a core Canadian tool for balancing current tax relief against future retirement withdrawals.

  • Retirement Savings Plan (RSP): Broader retirement-savings concept closely related to RRSP usage.

  • IRA: U.S. comparison point for individual retirement saving.

  • Pension: Broader retirement-income structure that may sit beside personal RRSP saving.

  • Old Age Security (OAS): Canadian public retirement income program often discussed alongside RRSP planning.

Revised on Monday, May 18, 2026