A Registered Retirement Savings Plan (RRSP) is a tax-deferred account.
Investment income earned within the account (such as interest, dividends, and capital gains) is not taxed until the funds are withdrawn from the account. Upon withdrawal, funds are treated as taxable income.
Contributions to an RRSP may reduce your taxable income, which can potentially reduce the income taxes you owe. It is important to verify your contribution limit with the Canada Revenue Agency (CRA) to ensure you do not exceed your allowable limit for the year.
Learn more about RRSP's in this Webinar hosted by Yufei Man, Chief Investment Officer and Head of Wealth at OneVest.
Disclaimer:
The information provided is intended for informational purposes only and is not to be considered as financial, tax, or investment advice. Contributions to an RRSP may reduce your taxable income, but it is important to consult with a tax professional to understand your specific tax situation and contributions limit with the Canada Revenue Agency (CRA). All investments carry risk, and past performance is not indicative of future results.