8.3.2 Registered retirement savings plans

One key deduction not only offers tax benefits, but it also helps you save systematically and prepare for retirement and other financial needs. Registered Retirement Savings Plans (RRSPs) let you put money into a registered plan and deduct the money from your taxable income until you take it out of the plan.


You have 60 days after the end of the year, usually March 1, to put money in your RRSP to get a tax deduction for the previous year. But don't wait until the deadline. Begin regular contributions (monthly or every payday) as soon as possible and your investment savings will start to grow sooner.

To see the benefits you can make by protecting your investments in an RRSP, go to Autorité des marchés financiers information on RRSP - Registered Retirement Savings Plan.


Michel is not sure if an RRSP is the best approach for him.


Example: Michel plans to retire in 10 years. This year, he has saved $10,000 that he can invest. He's not sure if an RRSP is the best approach for him.


When you put money into an RRSP, it reduces your taxable income for the year, and may produce a tax refund. You can use the refund to pay down a mortgage or other debt, save for a child's education or pursue other financial goals. In this way, an RRSP helps you prepare for retirement and your other goals. Talk to a financial advisor about the best way to use an RRSP to achieve your goals.

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