what is a 401k in canada

I don't know about 401K in Canada. Can anyone help me by explaining this?

Comments 2


In Canada, the 401(k) financial instrument does not exist as it is solely an American retirement savings plan. The retirement savings options available to Canadians are the Registered Retirement Savings Plan (RRSP) and the Tax-Free Savings Account (TFSA) that are similar in function. The RRSP provides a tax-deferred way for Canadians to save for retirement, implying that taxes are only paid on the investment returns or contributions at the time of withdrawal. Typically, this happens during retirement when the individual may be in a lower tax bracket.

0 Reply May 9, 2024


In Canada, the equivalent of the 401(k) retirement savings plan in the United States is known as a Registered Retirement Savings Plan (RRSP). It's a tax-advantaged account that allows individuals to save for retirement by contributing a portion of their income, with contributions being tax-deductible.

0 Reply May 2, 2024

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