What is an RRSP?
An RRSP is short for Registered Retirement Savings Plan. It's a well-known phrase for good reason: an RRSP is one of the best ways to save for your retirement and save on taxes at the same time.
Some people think that an RRSP is an investment or something that you purchase. It's neither. An RRSP is a government-approved account specially designed to help you save money for your retirement.
Consider an RRSP Loan to get you started. Here's a great article to explain how this works!
- Who can contribute: Canadian residents under the age of 71 with employment income and a tax return can contribute to an RRSP.
- Max contribution: 18% of earned income you reported on your tax return in the previous year, up to a maximum of $27,830 For 2022, the contribution limit is $29,210.
- Unused contribution room: If you have unused contribution room at the end of the year you can carry it over and use it next year.