RRSP
Business & Finance abbreviation · Personal Finance
| Stands for | Registered Retirement Savings Plan |
|---|---|
| Categories | Business & Finance |
RRSP stands for Registered Retirement Savings Plan, a personal finance abbreviation.
Canadian tax-deferred retirement account: contributions are deductible from taxable income, growth is sheltered, and withdrawals are taxed as income. Contribution room equals 18% of the previous year's earned income up to an annual maximum, minus pension adjustments, and unused room carries forward.
Example: I made my RRSP contribution before the March deadline to lower last year's tax bill.
Usage notes
Introduced in 1957; "registered" means registered with the Canada Revenue Agency. Contributions made in the first 60 days of a year can be deducted on the prior year's return. The Home Buyers' Plan lets first-time buyers withdraw funds tax-free and repay them over 15 years. The account must be converted to a RRIF or annuity by the end of the year the holder turns 71.
Related abbreviations
More personal finance abbreviations
- RDSP – Registered Disability Savings Plan
- RESP – Registered Education Savings Plan
- RMD – Required minimum distribution
- Roth 401(k) – Roth designated account within a 401(k) plan
- Roth IRA – Roth individual retirement account
- RRIF – Registered Retirement Income Fund
- SEP IRA – Simplified Employee Pension individual retirement account
- SEPP – Substantially equal periodic payments
- SIMPLE IRA – Savings Incentive Match Plan for Employees individual retirement…
- SIPP – Self-invested personal pension
- SMSF – Self-managed super fund
- Solo 401(k) – One-participant 401(k) plan