A contribution to an RRSP is deductible from your taxable income up to your contribution limit, which can be found on your previous year notice of assessment.

If you do not contribute up to your maximum contribution limit, the unused balance carries forward to future years.

Interest or gain inside an RRSP is not taxed until it is withdrawn.

You may over-contribute up to $2000 to your RRSP and the interest or gain on that amount is not taxed until it is withdrawn.

Penalties apply if your RRSP contains more than $2000 of un-deductible contributions.

There are different types of investments that qualify for RRSPs, you can chose between guaranteed investments or higher risk funds.

You may contribute to an RRSP up to and including the year you become 69, provided you have eligible contribution room.

You may contribute to a spousal RRSP and claim the contribution as a deduction on your tax return.

A spousal RRSP can be income of the spouse when it is withdrawn provided there has not been a contribution to any spousal RRSP within the year of withdrawal or either of the previous two years.  Otherwise it is taxable income of the contributor.

You may contribute to a spousal plan after you reach age 69, if your spouse is 69 or younger in the year of the contribution, and you have the contribution room.

From age 65 to 69 you may convert your RRSP to an RRIF which will begin to pay our a regular periodic pension which qualifies for a pension deduction of up to $1000 each year.

At age 65, if you are receiving no other superannuation pension, it is advisable to convert an adequate RRSP to a RRIF to create $1000 of pension income which qualifies for the pension deduction.

By Dec. 31 of the year you turn 69 you must close our all your RRSP accounts and convert them to RRIF accounts or some other suitable arrangement.

You may withdraw lump sum amounts from an RRSP at any time, but it will be taxed in full the year it is withdrawn.

Money borrowed to purchase an RRSP is not deductible.

Farmers may use RRSPs as an income-leveling tool by contributing in a high income year and withdrawing in a low income year.