Registered Retirement Savings Plan contributions are assets invested in anRRSP. An RRSP is a retirement savings vehicle for employees and the self-employed in Canada. Such contributions can be made at any time and for any amount up to an individual’s contribution limit for the year. If a con...
RRSPs have two main tax advantages. First, contributors maydeductcontributions against their income. For example, if a contributor's tax rate is 40%, every $100 they invest in an RRSP will save that person $40 in taxes, up to their contribution limit. Second, the growth of RRSP investment...
While non-registered accounts offer benefits like flexibility and no contribution limits, investment income is generally taxed when earned or realized. Though you can’t claim a tax deduction for contributing to a non-registered account, remember that capital gains are taxed at 50% of your ...