DEFINITION of 'Registered Retirement Savings Plan Contribution - RRSP Contribution'

Assets invested in an RRSP. RRSP contributions can be made at any time and for any amount up to an individual's contribution limit for the year. If a contributor does not make the maximum allowable contribution, the balance of unused contribution room from 1991 onwards is carried forward indefinitely. This allows people to make up for the years that they did not maximize their allowed RRSP contributions.

BREAKING DOWN 'Registered Retirement Savings Plan Contribution - RRSP Contribution'

Because RRSP contributions can be made at any time, are tax deductible and can be made in cash or in-kind, they present a tremendous opportunity for reducing income taxes.

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RELATED FAQS
  1. Should a Canadian citizen who lives and works in the U.S. continue to contribute ...

    No, a U.S. resident should not contribute to a RRSP account. RRSP contribution rules allow you to contribute a certain percentage ... Read Answer >>
  2. Is a Registered Retirement Savings Plan (RRSP) taxable in the U.S.?

    Learn how the IRS treats Canadian Registered Retirement Savings Plans that are held by U.S. citizens or residents, and discover ... Read Answer >>
  3. What are the main reasons not to get a Registered Retirement Savings Plan (RRSP)?

    Find out some of the reasons why you might want to reconsider opening up a Registered Retirement Savings Plan and instead ... Read Answer >>
  4. What are the penalties for early withdrawal from a Registered Retirement Savings ...

    Learn about the three major penalties associated with making an early withdraw from your Registered Retirement Savings Plan ... Read Answer >>
  5. When can you withdraw your savings from a Registered Retirement Savings Plan (RRSP)?

    Learn the standard age for withdrawing savings from a Registered Retirement Savings Plan (RSSP) and what you can expect if ... Read Answer >>
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