Learn how RRSPs can help with your tax planning
Registered Retirement Savings Plans (RRSP’s) are a great way to plan for the future. The amount that you can invest into an RRSP each year is referred to as your contribution room and will be indicated on your Notice of Assessment. Contributions to your RRSP account are tax-deductible and the investments grow tax-free, however, any withdrawals are taxable in the year the withdrawal is made.
You may also contribute to your spouse's RRSP if you have the available RRSP contribution room. This may be beneficial for long term tax planning to redistribute retirement earnings evenly between spouses. You can deduct the amount that you contribute to the spousal RRSP on your tax return without affecting your spouse’s RRSP contribution room.
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