A Registered Retirement Savings Plan helps you save tax-free until you retire. By investing in an RRSP, you can also generate a cash flow for your current needs through tax returns.

Benefits of an RRSP:

• Contributions to an investment income are not taxed after they are withdrawn

• Contributions are tax-deductible

• Unused contribution room can be carried forward

Useful facts:

• You can find your RRSP deduction limit on your latest notice of assessment from CRA

• Your contributions reduce your RRSP deduction limit and are defined as your unused deduction room at the end of the preceding year plus the lesser of 18% of previously earned income or annual RRSP limit of the year, minus your (PA) pension adjustment

• Generally, you can contribute to your RRSP until December 31st of the year you turn age 71 or when you have available RRSP deduction limit room

• Generally, you have to pay a tax of 1% per month on your contributions that exceed your RRSP deduction limit by more than $2,000

• You can claim a deduction for contributions you made to your RRSP, PRPP or SPP; contributions you made to your spousal RRSP, your unused RRSP contributions from a previous year