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RRSP (Registered Retirement Savings Plan)

A Canadian retirement account where contributions are tax-deductible and growth is tax-deferred.

Canadian InvestingBeginner

Definition

Contributions reduce your taxable income for the year, up to a limit tied to your earnings. Investments grow without tax until you withdraw, and withdrawals are taxed as income. It must be converted to an income option by the end of the year you turn 71.

Watch out for

Withdrawals before retirement are taxed and the contribution room is not restored.

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