What is RRSP?
Registered Retirement Savings Plan - a Canadian tax-advantaged retirement savings account.
Definition
A Registered Retirement Savings Plan (RRSP) is a Canadian retirement savings and investment vehicle for employees and self-employed individuals. Contributions are tax-deductible, and the investments grow tax-free until withdrawal. RRSPs have specific implications for US citizens living in Canada or Canadians with US tax obligations.
Who Needs to Know This?
Canadian residents saving for retirement. US citizens in Canada need special planning as RRSP treatment differs between US and Canadian tax law.
Key Deadline
Contributions for previous tax year due within 60 days of year end (typically March 1)
Potential Penalties
Over-contribution penalty of 1% per month on excess amounts
Related Forms
Common Mistakes to Avoid
- 1US citizens not making treaty election for RRSP deferral
- 2Over-contributing beyond the contribution limit
- 3Not understanding RRSP treatment for US tax purposes
- 4Withdrawing early without understanding tax implications
Related Terms
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