An RRSP (Registered Retirement Savings Plan) is an investment account designed to help Canadian residents save for retirement. Contributions can be deducted from your taxable income, which may reduce the taxes you pay in the year you contribute.
How do RRSPs work?
You can hold stocks, bonds, mutual funds, GICs and other investments in an RRSP. Investment growth is tax-deferred while the money stays in the account.
When you withdraw money, before or during retirement, the amount is added to your taxable income for that year and taxed accordingly.
RRSP limit and deadline for 2026
You can contribute up to 18% of your previous year’s earned income, to a maximum of $33,810 for 2026, as set by the Canada Revenue Agency. Contribution room you don’t use carries forward to future years. Contributions for the 2026 tax year can be made until March 1, 2027.
When should you contribute?
Because every dollar you contribute is tax-deductible, an RRSP is usually most useful in years when your tax rate is high.
RRSP or TFSA?
An RRSP gives you a deduction today and taxes withdrawals later; a TFSA gives no deduction, but growth and withdrawals are tax-free. Many people use both.
At Creditaria Canada we can help you open an RRSP and choose a strategy for your situation.