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Tax and Accounts

RRSP (Registered Retirement Savings Plan)

Tax-deferred registered retirement account.

Definition

Contributions are tax-deductible up to your annual contribution room (18% of prior-year earned income, capped). Growth is tax-deferred until withdrawal. The Canada-US tax treaty exempts U.S. dividends paid into an RRSP/RRIF from the 15% U.S. withholding tax (effectively no withholding applies).

Source

Income Tax Act; Canada-US Tax Treaty Article XVIII

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