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The RRSP, or Registered Retirement Savings Plan, is a popular account in Canada that helps individuals save for retirement and reduce their tax liabilities. For instance, if you earn $100,00 each year and allocate $15,000 towards the RRSP, your taxable income for the particular year reduces to $85,000.
Moreover, any income earned within the RRSP in the form of dividends, capital gains, or interests is deferred until withdrawal, enabling Canadians to build a larger retirement fund over time.
You can contribute up to 18% of your earned income to the RRSP. But Canadians also have an RRSP contribution limit, which is $31,560 in 2024, up from $30,780 in 2023.
Given the RRSP is a retirement fund, Canadian investors should consider holding quality blue-chip stocks in their portfolio and generate inflation-beating returns.
Here are three such TSX stocks RRSP investors should consider owning in 2024.
