Registered Retirement Savings Plan (RRSP)

Definition: A tax-advantaged retirement planning instrument for Canadians, similar to an IRA in the U.S. Like a Traditional IRA, contributions to this plan can be tax-deferred up to a certain limit, income from interest or other sources is also tax deferred, and it also allows some money to be withdrawn in certain circumstances. Individuals can contribute to this account until they reach 71 years of age, at which point they must cash out, or transfer the balance to a Registered Retirement Income Fund.