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A registered retirement savings plan (RRSP) is a savings program that is overseen by the federal government. Initial RRSP contributions entitle investors to a tax deduction. Furthermore, amounts accumulated in an RRSP can continue to grow in a tax-sheltered savings vehicle and is usually used to finance one's retirement. The amount investors may contribute to their RRSP depends on how much income they earned in the previous year. Finally, taxes are payable on RRSPs during the year in which they are used.

 

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