Registered retirement savings plan

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A registered retirement savings plan (RRSP) (French: régime enregistré d'épargne-retraite, REER), or retirement savings plan (RSP), is a Canadian financial account intended to provide retirement income, but accessible at any time. RRSPs reduce taxes compared to normally taxed accounts. They were introduced in 1957^[1] to promote savings by employees and self-employed people.

They must comply with a variety of restrictions stipulated in the Income Tax Act.^[2] Qualified investments^[3] include savings accounts, guaranteed investment certificates (GICs), bonds, mortgage loans, mutual funds, income trusts, common and preferred shares listed on a designated stock exchange, exchange-traded funds, call and put options listed on a designated stock exchange, foreign currency, and labour-sponsored funds. Short call contracts covered by long stock ("covered calls") are eligible, however, cash secured puts (short put contracts covered by cash) are not eligible. Rules determine the maximum contributions, the timing of contributions, the assets allowed, and the eventual conversion to a registered retirement income fund (RRIF), or an annuity, or the withdrawal of all funds within the RRSP, at age 71.^[4]