Registered Retirement Savings Plan (RRSP)
Tax-deferred savings for retirement: contributions, deductions, and how withdrawals work at a high level.
An RRSP is a registered account that lets you save for retirement with tax deferral: you may deduct eligible contributions within your limit, investments grow tax-deferred, and amounts you withdraw are generally included in income (except under specific plans with repayment requirements).
This page is a high-level overview only. Contribution room, age limits, spousal plans, and conversions to a RRIF have detailed rules. Always use the CRA website or a qualified professional for your situation.
- Open an RRSP with a bank, credit union, trust, or insurance companyOften required
Choose registered plans that fit your investments (e.g. mutual funds, GICs, stocks).
- Notice of assessment and contribution room
Your RRSP deduction limit appears on your CRA notice of assessment or My Account.
- Beneficiary designation
Review beneficiary rules for Quebec vs other provinces and tax on death.
- Annual deduction limit is based on earned income and pension adjustments; unused room carries forward.
- Contributions you deduct generally reduce taxable income for that year (subject to limits and rules).
- Withdrawals are generally taxable as income; special programs exist (e.g. HBP, LLP) with repayment rules.
- There is a maximum age for new contributions (verify current age rule on CRA).
- You need earned income (as defined by CRA) to generate new RRSP room in following years.
- Spousal RRSPs follow specific attribution rules on withdrawals—get advice if this applies.
- Non-residents have different rules; confirm with CRA or a qualified advisor.
Disclaimer
This guide is for general information only. Tax and benefit rules change. Always confirm current requirements with the Canada Revenue Agency, Service Canada, or a qualified financial or tax professional before making decisions.