RRSP stands for Registered Retirement Savings Plan. It is a retirement plan in which one can save for one’s retirement under tax shelter government laws. These investments are tax deductibles and thus reduces you payable tax.
Any income you produce in the RRSP is regularly exempt from tax as long as the money remain in the plan, you normally have to pay tax when you get payments from the plan.
RRSP accounts can be set up with either one or two associated persons:
- Individual RRSP
- Spousal RRSP
- Group RRSP
- Pooled RRSP