An RRSP is a tax-advantaged Canadian retirement savings account allowing contributions up to 18% of earned income annually, with a limit of $32,490 for 2025. It offers tax deferral on growth and immediate tax deductions on contributions. RRSPs can hold savings accounts, GICs, mutual funds, ETFs, stocks, and bonds. Withdrawals are taxed, but programs like the Home Buyers’ Plan and Lifelong Learning Plan allow tax-free withdrawals with repayment. Overcontributions above $2,000 incur penalties.
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