Registered Retirement Savings Plan
- A savings plan introduced by the Federal Government to encourage Canadians to save money for retirement. The investment and the interest earned on the RRSP is sheltered meaning it will not be taxed as long as the funds remain in the plan.
Tax deferred investment contribution used to reduce income tax.
Related Terms and Acronyms
- Active Participant — Definition,
- Actively enrolled in an employer's retirement plan.
- Annuity — Definition,
- A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
- A financial instrument that disperses a number of payments over a set period of time.
- Deferred Annuity — Definition,
- An annuity that makes payments to the annuitant at some date in future instead of immediately.
- Empty Nesters — Definition,
- Men or women whose children have grown up and moved out and who might be in the market for a smaller house.
- Group Registered Retirement Savings Plan (GRRSP) — Acronym,
- Home Buyers' Plan (HBP) — Acronym, Canada, Very Important,
➥ Government assistance for first-time homebuyers.
- A way for a homebuyer to use part of his or her RRSP as a down payment on a mortgage.
- Investment — Definition,
- Something you put your money into in order to make money.
- Pension — Definition,
- A retirement plan where money is set aside over many years for an individual's retirement.
- Registered Education Savings Plan (RESP) — Acronym, Canada, Very Important,
➥ RESPs are offered by most financial institutions in Canada.
- An investment vehicle used for a child's post-secondary education.
- Security — Definition,
- A tradable financial implement that represents ownership, the rights to ownership or debt.
- Property designated as collateral.
- A document stating ownership of a stock or bond.
- Tax Deferred Annuity (TDA) — Acronym, Important,
➥ More commonly known as a Tax Sheltered Annuity (TSA).
- A type of annuity where taxes are deferred until the annuitant decides to withdraw money from the annuity.
- Tax-Free Savings Account (TFSA) — Acronym, Canada, Important,
- A savings account for Canadians where income earned is not taxed.
- Tax-sheltered — Definition,
- A savings or investment plan that offers significant tax savings.