Registered Retirement Savings Plan (RRSP)

An RRSP, or Registered Retirement Savings Plan, is an investment account which allows you to defer paying tax on funds deposited to it. When you make a contribution to your RRSP, you get a tax deduction for the amount contributed. The deduction reduces taxable income, so the higher your marginal tax rate, the greater the tax savings will be.

Income earned in an RRSP is not taxable while it remains in the RRSP, including interest, dividends, and capital gains, so can grow tax free until the money is withdrawn. There may be tax withheld from dividends received from some foreign investments, but not from dividends received from US corporations.

Funds can be withdrawn from an RRSP at any time, but all withdrawal amounts must be included in taxable income. At the time funds are withdrawn, tax will be withheld based on the total withdrawal amount. Funds can remain in an RRSP until the year the taxpayer turns 71, at which time the funds must be withdrawn or converted into a Registered Retirement Income Fund (RRIF).

More information on RRSP's

Mutual funds, other securities and securities related financial planning services are offered through Qtrade Advisor, a division of Credential Qtrade Securities Inc.


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