What is RRSP?
A registered retirement savings plan (RRSP), or retirement savings plan (RSP), is a type of financial account for holding savings and investment assets. RRSPs have various tax advantages compared to investing outside of tax-preferred accounts. They were introduced in 1957 to promote savings for retirement by employees and self-employed people. source:Wikipedia
Who is eligible for RRSP?
If you fulfill all of the below conditions then you are eligible for RRSP account
- If you have earned income
- and have Social Insurance Number and younger than 71 years
- and have Social Insurance Number and younger than 71 years
5 Benefits of RRSP
- RRSP contributions are tax-free.
- Your saving grows tax-free.
- When you retire you can convert it to get regular payment.
- You can borrow money from your RRSP to buy your first home.
- Spousal RRSP can reduce the combined tax burden.
