RRSPs: What you need to know
Introducing RRSPs
What are RRSPs?
An RRSP is a registered savings plan that lets you save for retirement. You save tax on your contributions and you don't pay tax on your investment earnings until you withdraw them.
Opening an RRSP
There are a few different ways to open an RRSP. You can open one through your bank, credit union, or investment firm. You can also open an RRSP online.
Contributing to an RRSP
The maximum amount you can contribute to an RRSP each year depends on your income. You can find your RRSP contribution limit on your Notice of Assessment from the Canada Revenue Agency (CRA).
Withdrawing from an RRSP
You can withdraw money from your RRSP at any time. However, you will have to pay tax on the amount you withdraw. The tax rate will depend on your income and the province or territory you live in.
RRSPs and retirement
RRSPs are a great way to save for retirement. They allow you to save tax-free and you don't have to pay tax on your investment earnings until you withdraw them.
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