What is an RRSP (Registered Retirement Savings Plan) & How Does It Work? (2024)

You can hold a wide range of investments within an RRSP¹, depending on the type of plan, including stocks, bonds, guaranteed investment certificates (GICs), and mutual funds. Investment income earned from these investments, is tax-deferred in the RRSP until you withdraw the funds.

How much you can contribute annually is subject to a maximum contribution amount, known as your RRSP contribution or deduction limit. Your RRSP contribution limit for 2024 is equal to 18% of your 2023 earned income, or $31,560 (whichever is lower) plus previous unused contribution room less any pension adjustments. You can also look at your 2023 notice of assessment for your 2024 RRSP contribution limit.

For more on RRSP contributions, review our guide on making RRSP contributions.