A Registered Retirement Savings Plan (RRSP) is a savings plan registered with Revenue Canada to assist and encourage Canadians to save for their own retirement. RRSPs are set up so that an individual holds a variety of investments which are sheltered from tax. The purpose of using this vehicle is to provide a retirement income.
Two major advantages to contributing to an RRSP are:
• Contributions are deductible from current income for tax purposes (up to a certain limit).
• Investment income sheltered within the plan accrues tax free, until the individual retires or makes a claim.
Types of RRSPs are: Basic RRSP, Group RRSP, Self-Directed RRSP
For more information contact us or visit the Canada Revenue Agency Website