RRSP (Registered Retirement Savings Plan)
A registered account that defers tax on contributions until withdrawal, typically in retirement.
Last reviewed May 20, 2026
Reviewed for accuracy and clarity by Sandeep Singh before publication. Learn about our editorial process.
What it means
A Registered Retirement Savings Plan lets you deduct contributions from your taxable income now, with the tax bill deferred until you withdraw the money — usually in retirement, when your income (and tax rate) may be lower.
Why it matters
The tax deduction can meaningfully lower what you owe today, but the benefit depends heavily on your income now versus in retirement — it isn't automatically the better choice over a TFSA.
Common misunderstandings
- It's tax-deferred, not tax-free — withdrawals are taxed as income.
- Contribution room isn't unlimited; it's based on a percentage of your previous year's earned income, up to an annual maximum.
Where you'll see it
Every tax season, and in any conversation about retirement savings strategy.
Related terms
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