Registered Retirement Savings Plan Deduction - RRSP Deduction

AAA

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

The amount that a Canadian taxpayer contributes to his or her RRSP. This amount can be deducted from the taxpayer's annual income to arrive at his or her taxable income for the year.

INVESTOPEDIA EXPLAINS 'Registered Retirement Savings Plan Deduction - RRSP Deduction'

The RRSP deduction amount is found on line 208 of the annual income tax return filed with Canadian Revenue Agency. As this is a tax deduction from personal income, it is advantageous for taxpayers to maximize the value of their RRSP deduction - as they minimize the amount of money that is subject to personal income tax.

RELATED TERMS
  1. Registered Pension Plan - RPP

    A form of a trust that provides pension benefits for an employee ...
  2. Income Tax

    A tax that governments impose on financial income generated by ...
  3. Tax Return

    1. The tax form or forms used to file income taxes with the Internal ...
  4. Registered Retirement Income Fund ...

    A retirement fund similar to an annuity contract that pays out ...
  5. Canada Revenue Agency - CRA

    A federal agency that collects taxes and administers tax laws ...
  6. Registered Retirement Savings Plan ...

    A legal trust registered with the Canada Revenue Agency and used ...
RELATED FAQS
  1. When should I take my Canadian Pension Plan distributions?

    The Canadian Pension Plan (CPP) is a retirement program from which contributing Canadians may receive payments at the age ... Read Full Answer >>
  2. How does the trust maker transfer funds into a revocable trust?

    Once a revocable trust is created, a trust maker transfers funds or property into the trust by including them in a list with ... Read Full Answer >>
  3. How is marginal propensity to save calculated?

    Marginal propensity to save is used in Keynesian macroeconomics to quantify the relationship between changes in income and ... Read Full Answer >>
  4. How can I get a "pensionado" visa to retire in Costa Rica?

    In order to receive a pensionado visa and retire in Costa Rica, a retiree needs to fill out a list of key documents from ... Read Full Answer >>
  5. What option strategies can I use to earn additional income when investing in the ...

    A risk-averse investor should build his retirement portfolio by putting together a well-diversified portfolio and then regularly ... Read Full Answer >>
  6. What is the importance of residual value in an automobile lease?

    The residual value of a car is often used by banks and auto dealerships to determine how much to charge per month for a lease. ... Read Full Answer >>
Related Articles
  1. Retirement

    Will Your Retirement Income Be Enough?

    Find out how to determine whether you're on the path to a comfortable retirement, or financial ruin.
  2. Retirement

    Maxing Out Your RRSP (Canadian)

    Increasing your savings will provide tax benefits - and peace of mind.
  3. Retirement

    Advisors: Broach this Topic with Grandparents

    Talking to older clients about financial planning for their grandchildren may help secure a new generation of clients.
  4. Retirement

    Avoid These 4 Retirement Account Mistakes

    The top 4 mistakes investors should avoid in their retirement accounts.
  5. Savings

    Millennials' Money Habits: How to Help

    Millennials gleaned much of their financial savings habits from their parents. Here's where they could use some help.
  6. Professionals

    How Advisors Can Help Couples Agree on Finances

    Financial advisors often end up being mediators when it comes to working with couples. Here are some ways to get them on the same financial path.
  7. Savings

    Pay Less for Financial Advice

    Here's a look at what you should pay for financial advice and investment management, what you should get for that price and how you can pay less.
  8. Retirement

    3 Savvy Strategies for Rolling Over Your 401(k)

    How to make the most on your 401(k) rollover – including considerable tax benefits (capital gains, not income tax) when company stock is involved.
  9. Retirement

    5 Benefits of Rolling Over a 401(k)

    Nearing retirement or changing jobs? Here's why you might want to move your 401(k) into an IRA (more investment options, more control).
  10. Retirement

    How Much Does It Cost to Roll Over a 401(k)?

    Normally, there's no fee to roll over a 401(k) account. But ask your broker about the cost of opening a new account. That's where the fees usually occur.

You May Also Like

Hot Definitions
  1. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  2. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  3. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  4. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  5. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
  6. Touchline

    The highest price that a buyer of a particular security is willing to pay and the lowest price at which a seller is willing ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!