Registered Retirement Savings Plan (RRSP)
A Registered Retirement Savings Plan (RRSP) is a Canadian account for saving toward retirement. Money you put in can lower the income tax you owe this year. The savings can grow inside the plan. You pay tax later, when you take the money out, usually in retirement when your income may be lower. Some employers offer a group RRSP through payroll. In the United States, a Traditional IRA or a traditional 401(k) works the same way: a tax break now, tax on withdrawals later.
Related Lessons:
