Registered Retirement Savings Plan (RRSP)
Canadian ProgramsA tax-deferred savings account for retirement. Contributions reduce your taxable income now, and the investments grow tax-free inside the plan. You pay tax when you withdraw, ideally in retirement when your income and tax rate are lower.
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Tax-Free Savings Account (TFSA)
A flexible registered account where your investments grow completely tax-free and withdrawals are not taxed. Available to Canadian residents 18 and older with a SIN. Contribution room accumulates each year even if you do not open one right away.
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Home Buyers' Plan (HBP)
A program that lets you withdraw up to $60,000 from your RRSP tax-free to buy or build your first home. The money must be repaid to your RRSP over 15 years. If you do not repay, the amounts are added to your taxable income.
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Registered Retirement Income Fund (RRIF)
An account you must convert your RRSP into by the end of the year you turn 71. A RRIF requires you to withdraw a minimum amount each year, which is taxable income. It is the spending-down phase of your retirement savings.