An RRSP is a retirement savings account that allows you to grow your savings tax-free until you withdraw them at retirement, ensuring you have funds to support your lifestyle in later years.
Key Features of an RRSP
Tax Deferral: Contributions are tax-deductible, and your savings grow tax-free until withdrawal.
Contribution Limits: Annual contribution limit based on income, with unused room carried forward.
Diverse Investment Options: Invest in stocks, bonds, mutual funds, and more.
Retirement Focused: Funds can be withdrawn after retirement with potential tax advantages.
Benefits of an RRSP
Tax Savings: Immediate tax benefits on contributions and tax-deferred growth.
Retirement Security: Helps ensure you have enough savings for retirement.
Flexible Investments: Wide range of investment choices to grow your savings.
Wealth Accumulation: Maximizes your savings potential for the future.
Note
This is a general overview of RRSP. Contribution limits, tax rules, and benefits can vary based on your individual situation. For specific advice, please contact a licensed advisor.