Registered Retirement Savings Plan (RRSP) is a Canadian retirement savings and investment vehicle introduced in 1957.
Types of RRSPs include Individual, Spousal, Group, and Self-Directed, each suited to different saving strategies.
Eligibility for an RRSP requires Canadian residency, earned income, and being under 71 years old.
Contribution limits are 18% of previous year's earned income, up to a government-set maximum.
Investment options within an RRSP include stocks, bonds, mutual funds, ETFs, GICs, REITs, and more.
Benefits of RRSPs include tax-deferred growth, tax-deductible contributions, flexible contribution limits, a variety of investment options, income splitting, creditor protection, and tax-free transfers.
Withdrawals from RRSPs are taxable and subject to withholding tax, with options like the Home Buyers’ Plan and Lifelong Learning Plan offering tax advantages for specific purposes.
Setting up an RRSP involves knowing your contribution room, choosing an RRSP type, selecting a financial institution, opening the account, choosing investments, and making contributions.