Registered Retirement Savings Plan

Definition

  • 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.

Website
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/rrsps-eng.html

Relevant Locations
Canada

Notes
Tax deferred investment contribution used to reduce income tax.

Acronyms
RRSP

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,
      • A way for a homebuyer to use part of his or her RRSP as a down payment on a mortgage.
      Government assistance for first-time homebuyers.
    • 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,
      • An investment vehicle used for a child's post-secondary education.
      RESPs are offered by most financial institutions in Canada.
    • 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,
      • A type of annuity where taxes are deferred until the annuitant decides to withdraw money from the annuity.
      More commonly known as a Tax Sheltered Annuity (TSA).
    • 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.
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