Registered Retirement
Savings Plan (RRSP)

An RRSP, or Registered Retirement Savings Plan, is a Canadian tax-advantaged retirement savings account. Contributions are tax-deductible, reducing taxable income, and investments grow tax-free until withdrawal at retirement, when they are taxed as income. RRSPs are a great way to start your retirement planning in Canada. Read our comprehensive guide: What is an RRSP?

The RRSP deduction limit is the maximum amount you can contribute to your RRSP each year in Canada. It is the lesser of 18% of your previous year's earned income or a fixed annual limit set by the government, which is CA$33,810 for 2025. Unused contribution room can be carried forward. For more information, read: RRSP Contribution Limit 2025

Tax-Deductible Contributions: Reduce your taxable income in the year of contribution.
Tax-Free Growth: Investments grow without tax until withdrawal.
Tax-Efficient Withdrawals: Withdrawals are taxed as income, typically at a lower rate in retirement.
For more RRSP benefits, please read our guide: 14 RRSP Benefits You Need to Know

Yes, RRSP contributions are tax-deductible, reducing your taxable income and potentially lowering your tax bill for the year you contribute.

Withdrawing from an RRSP without paying tax is generally not possible, as withdrawals are typically considered taxable income. However, there are specific exceptions:
1. Home Buyers' Plan (HBP): You can withdraw up to CA$35,000 tax-free to buy or build your first home, but you must repay it over 15 years.
2. Lifelong Learning Plan (LLP): You can withdraw up to CA$10,000 per year (up to CA$20,000 total) for education or training for you or your spouse, with a repayment period of 10 years.

A Spousal RRSP allows one spouse to contribute to an RRSP in the other spouse's name, giving the contributor a tax deduction. This approach helps with income splitting in retirement, potentially lowering the couple's overall tax burden by balancing retirement income between the spouses. To know more about Spousal RRSP, read: What Is a Spousal RRSP and How Does It Work?

Yes, you can transfer your RRSP to moomoo with ease. Moreover, you will get amazing rewards by transferring your eligible assets to moomoo! For more information, please see: Transfer for Smart Investing and Get Cash Rewards!