What is an RRSP?
A Registered Retirement Savings Plan (RRSP) is a tax-advantaged investment account designed to help Canadians save for retirement. Contributions are tax-deductible, and your investments grow tax-free until withdrawal.
Tax Deduction Today
Lower your taxable income immediately with every contribution
Tax-Free Growth
No taxes on dividends, interest, or capital gains inside your RRSP
Flexible Investments
Hold stocks, bonds, ETFs, mutual funds, GICs, and more
Spousal RRSPs
Income splitting strategy to reduce taxes in retirement
2026 Contribution Limits
Annual Limit
Maximum for 2026 tax year
Or 18% of previous year's earned income (whichever is less)
Contribution Deadline
Deadline for 2026 tax year contributions
You never lose contribution room - it accumulates
Tax Benefits of RRSPs
Immediate Tax Deduction
Every dollar you contribute reduces your taxable income.
Example:
- • Income: $80,000
- • RRSP Contribution: $10,000
- • New Taxable Income: $70,000
- • Tax Savings: ~$3,000-$4,000
Tax-Deferred Growth
Investments grow tax-free until withdrawal in retirement.
Benefits:
- • No tax on dividends
- • No tax on interest
- • No tax on capital gains
- • Compound growth accelerates
Withdrawal Rules
Withdrawals added to income and taxed at your marginal rate
10-30% withheld immediately depending on amount
You cannot re-contribute withdrawn amounts (except HBP/LLP)
Special Programs
Home Buyers' Plan (HBP)
Withdraw up to $60,000 tax-free for first home purchase. Must repay over 15 years.
Lifelong Learning Plan (LLP)
Withdraw up to $20,000 tax-free for education. Must repay over 10 years.