Canadian Tax-Advantaged Savings Glossary
Every CRA-registered account and tax-planning term used on PlainRRSP, defined in plain language. Internal links connect each term to the relevant in-depth guide.
- RRSP
- Registered Retirement Savings Plan, a CRA-registered account that defers tax on income until withdrawal. Contributions are deductible against current-year income up to your contribution limit.
- TFSA
- Tax-Free Savings Account, a CRA-registered account where contributions are not deductible but growth and withdrawals are completely tax-free.
- RESP
- Registered Education Savings Plan, a CRA-registered account for funding a child's post-secondary education, eligible for the 20% CESG federal match up to $7,200 lifetime.
- FHSA
- First Home Savings Account, a CRA-registered account introduced in 2023 combining RRSP-style deduction with TFSA-style tax-free withdrawal for first-home purchases. Lifetime cap $40,000.
- CESG
- Canada Education Savings Grant, the 20% federal match on RESP contributions up to $500 per child per year, $7,200 lifetime.
- CLB
- Canada Learning Bond, federal contribution of $500-$2,000 to the RESP of children in lower-income families, requires no household contribution.
- HBP
- Home Buyers' Plan, a program allowing first-time home buyers to withdraw up to $60,000 from an RRSP for a down payment, repayable over 15 years.
- LLP
- Lifelong Learning Plan, allows you to withdraw up to $10,000/year (lifetime $20,000) from your RRSP to fund full-time post-secondary education for yourself or your spouse, repayable over 10 years.
- PA
- Pension Adjustment, the dollar amount the CRA requires your employer to compute that reduces your RRSP room when you participate in an employer pension plan. Appears in T4 Box 52.
- PSPA
- Past-Service Pension Adjustment, an adjustment to your RRSP room when you purchase service in an employer pension plan for years already in the past.
- RRIF
- Registered Retirement Income Fund, the account your RRSP must convert to no later than December 31 of the year you turn 71, with mandatory minimum annual withdrawals.
- LIRA
- Locked-In Retirement Account, an RRSP-equivalent for funds transferred from a former employer's pension; withdrawals are restricted until retirement age.
- Earned income
- The CRA definition used in the RRSP room formula: includes employment, self-employment, and net rental income; excludes investment income, capital gains, and pension income.
- Marginal tax rate
- The combined federal-plus-provincial percentage tax applied to your next dollar of taxable income, the rate that matters most for RRSP-vs-TFSA decisions.
- Notice of Assessment
- The CRA's official confirmation of your filed tax return; it carries the authoritative figure for your next year's RRSP deduction limit.