Difference between RSP & RRSP
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Thread: Difference between RSP & RRSP

  1. #1
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    Difference between RSP & RRSP

    I've seen some stuff that says there is a difference and other things says they are exactly the same. Is there any actual difference? Does the plan RSP have any tax advantages?


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    Quote Originally Posted by dilbert789 View Post
    I've seen some stuff that says there is a difference and other things says they are exactly the same. Is there any actual difference? Does the plan RSP have any tax advantages?
    I'm going to go out on a limb and suggest that "RSP" is just a short form for "RRSP". You save one letter and it's easier to spell out.
    Mike Holman
    Money Smarts Blog Investing and Personal Finance

  3. #3
    Administrator CanadianCapitalist's Avatar
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    RSP. RRSP. Same thing, AFAIK.
    Canadian Capitalist -- Helping you invest & prosper

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    Senior Member HaroldCrump's Avatar
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    Quote Originally Posted by dilbert789 View Post
    I've seen some stuff that says there is a difference and other things says they are exactly the same. Is there any actual difference? Does the plan RSP have any tax advantages?
    The first R is for Registered.
    Therefore, RRSP explicitly flags it as a true, registered plan subject to all the RRSP rules and regulations.
    On the other hand, RSP could theoretically be any retirement savings plan, not necessarily registered.
    I know that's a weak distinction, but that's all I can think of.
    I'd imagine 99.99% of the time, RSP and RRSP are the same thing.
    But for the other 0.01% time, some TLA challenged dude might use the term RSP loosely.

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    Senior Member m3s's Avatar
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    What's the difference between a mortgage and an "unmortgage"? Nothing really

    ING likes to make up their own names to be special

    Please note that when we say "RSP" - we do mean "RRSP". What's the difference you ask? We eliminated one of the R's since that's the way most people say it - RSP. Just another little way we keep things simple. So don't worry, our RSP is indeed a Registered Retirement Savings Plan once it's registered with the Canada Revenue Agency (CRA). And it really does grow.
    When everyone thinks the same they don't think at all

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    Quote Originally Posted by mode3sour View Post
    What's the difference between a mortgage and an "unmortgage"? Nothing really

    ING likes to make up their own names to be special
    On a faintly related note - my mother likes to call RESPs "resps" (one word) rather than spell it out. I keep telling her that's not how to say it, but she doesn't listen.
    Mike Holman
    Money Smarts Blog Investing and Personal Finance

  7. #7
    Senior Member MoneyGal's Avatar
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    Depends on what the "R" stands for.

    If it's "registered," there are a couple of different options: RESP, RRSP, RDSP, RPP (and TFSAs are also "registered," but don't include the magic R). These are all "registered savings plans."

    "Registered" implies registered for tax-deferral purposes with CRA. (This is why TFSAs don't have an "R" in their name - there's no tax deferral.)

    If the R stands for "Retirement," there are many different "Retirement savings plans," from buying a condo in Florida to investing in anything from horses to uranium to purchasing GICs. This just implies saving for retirement, no matter how you do it.

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    These are the exact responses that I pretty much expected... most say they are the same, others say they may not be. I ask as I received my statement from Investors Group the other day that said I have a small RSP account plan that I was thinking of transferring to my Questtrade TFSA so I could play around with it myself. However if its actually an RRSP I'll probably just leave it alone... I guess I should make a phone call!


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