What is an RRSP?

Registered Retirement Savings Plan (RRSP): a way to save for your retirement with tax-deferral and tax-deductible benefits.  

Benefits of an RRSP

Tax-Deferral: The income you earn and contribute to your RRSP will not be taxed as long as it stays in the account. By the time you withdraw money during your retirement, you will be taxed at the rate appropriate at that time. This is a great option to grow your assets until retirement

  • Variety of Investments: The types of investments in an RRSP can include cash, mutual funds, bonds, stocks, GICs, ETFs, etc.

  • Borrow from yourself: You can fund yourself or spouse or common-law partner in buying a new house or through schooling.

  • Pay less Income Taxes: Contributions to the fund are tax-deductible, meaning the amount of money you invested in your RRSP will be subtracted from your total income and you will pay less income taxes.

Things to Know about RRSPs

  • If you choose to withdraw money prior to retirement, a high tax penalty will be applied, with the exception of using it for housing or schooling (as long as it is paid back within 10 years).

  • The government requires you to close your RRSP by the age of 71 and you can use the money to buy a RRIF or an annuity.

A maximum limit is set on the amount of money you are able to contribute to your account in a year. This amount changes year to year, so it is important to keep up to date. You can also catch up if you did not contribute the maximum amount in the previous year. To understand how much you can contribute, see the Notice of Assessment you received after filing your income taxes last year.

Investing in the Digital Future

Coincapital offers investment products focused on emerging technologies including blockchain, digital currencies, AI and robotics.

Let's keep in touch

We help Canadians easily access the tremendous growth potential of these industries with products designed to fit in your everyday portfolio.

Stay up-to-date with the latest news and trends in technology investing by signing up for our monthly newsletter.