Registered Retirement Savings Plan

A type of Defined Contribution Plan available in Canada. No taxes are paid on the contributions or any changes in the market value of the investments in the account until the money is withdrawn. That is, your salary is reduced by the amount of your RRSP contributions in the year the contributions are made. Group RRSPs can be established by employers as part of a defined contribution plan, while individual RRSPs can be set up by individuals.