what is RRSP contribution

[456987]

Hello
What exactly is RRSP contribution (as per income tax)?
I have just stared working onn minimum salary.. Do i have to contribute towards this?

 

[scorpion_ca]

Hello
What exactly is RRSP contribution (as per income tax)? As per CRA, "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." http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/rrsps-eng.html
I have just stared working onn minimum salary.. Do i have to contribute towards this? No, it doesn't worth it. However, you can deposit your savings to TFSA. Your interest earnings would be tax free on that account. http://www.tfsa.gc.ca/

 

[AnaMaria]

You can contribute 18% of your earned income (subject to other retirement contributions). You can make a contribution for 2012 until March 1st, 2013. If you make contribution to RRSP, your income tax will be reduced. You do not need to do it. Your spouse can contribute to your RRSP.