An RRSP is a tax-deferred account.
Investment income earned (interest, dividends, capital gains) within the account is not taxed until the funds are withdrawn from the account. Funds withdrawn from the account are treated as income.
Contributions to an RRSP account reduce your taxable income and therefore reduce your income taxes paid. You'll need to check your contributions limit with the Canada Revenue Agency (CRA).
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article