Acronyms for the RRSP, TSFA and RESP.

 

• RRSP -Registered Retirement Savings Plan  

          An RRSP is a retirement savings plan that you establish, that we register, and to which you            or your spouse or common-law partner contribute. Deductible RRSP contributions can be used          to reduce your tax.

        Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in      the plan; you generally have to pay tax when you receive payments from the plan.

• TSFA -The Tax-Free Savings Account

           The Tax-Free Savings Account (TFSA) allows Canadians, age 18 and over, to set money         aside tax-free throughout their lifetime. Each calendar year, you can contribute                           up to the TFSA dollar limit for the year, plus any unused TFSA contribution room from the           previous year, and the amount you withdrew the year before.

• RESP -Registered Education Savings Plans

           A registered education savings plan (RESP) is a contract between an                                      individual (the subscriber) and a person or organization(the promoter).

           Under the contract, the subscriber names one or more beneficiaries (the future                        student(s)) and agrees to make contributions for them, and the promoter agrees to                    pay educational assistance payments (EAPs) to the beneficiaries. 

          There are two different types of RESP available: family plans and specified plans.