What is a Retirement Savings Plan ?
A Retirement Savings Plan (RSP) is an investment account designed primarily for saving toward your retirement years. As a Canadian government regulated program, RSPs have special tax benefits. Your annual RSP contribution can greatly reduce the amount of income tax you pay in that year and the money you put away can have years of tax-deferred growth potential. You only pay tax on the amounts you withdraw. RSPs are available through chartered banks, trust companies and other selected financial institutions. You should consider an RSP if: You want to supplement your retirement income so that you can maintain your lifestyle after you retire You want to reduce your income tax this year You want to earn tax-deferred investment income on your savings You anticipate fluctuations in your income because of maternity leave, a return to school or a career change (Making withdrawals from an RSP in years when you have little or no earned income can help equalize your income and you could pay less i
