Registered Retirement Savings Plans (RRSP)
The RRSP is the best savings vehicle out there! You can get a tax refund from the Government of Canada for up to 40% depending on your marginal tax rate.
How does it work?
Essentially, the total amount contributed to your RRSP in a given tax year is deducted from your taxable income for that year, reducing the amount of tax payable. This means the government will write you a fat cheque for your over contribution!
Who is eligible? You are eligible to open a RRSP if you:
Are a Canadian resident
Have a valid Social Insurance Number (SIN)
Are 71 years of age or under
Have an income
Filed a Canadian tax return in the previous year