A Registered Retirement Savings Plan (RRSP) is a retirement savings for employees and the self-employed in Canada.
Registered Retirement Savings Plans were created in 1957 as part of the Canadian Income Tax Act. They are registered with the Canadian government and overseen by the Canada Revenue Agency (CRA).
RRSPs have two main tax advantages.
First, contributors may deduct contributions against their income.
Second, the growth of RRSP investments is tax-sheltered. Unlike with non-RRSP investments, returns are exempt from any capital gains tax, dividend tax, or income tax.