Making the Most of Canadian Registered Accounts: A Quick Reference Guide
Canadians have access to a plethora of tax-preferred vehicles for saving and investing, each of which provides unique planning opportunities and trade-offs, as well as their own rules and conditions that must be followed.
What is an RRSP?
An RRSP is a retirement savings account available to any Canadian individual taxpayer under the age of 72 and to which they or their spouse/common-law partner can contribute — subject to their respective deduction limits.
Understanding the RRSP Deduction Limit Statement
The RRSP deduction limit outlines how much an individual can contribute and deduct for personal tax purposes (plus the cumulative $2,000 overcontribution allowance). RRSP contributions are the amounts individuals have deposited into their RRSPs and which may be deducted for income tax purposes. If contributions do not exceed deduction room by over $2,000 there is no cause for concern.
