In terms of tax planning, the use of Registered Retirement Savings Plans can provide for both tax deferral and tax avoidance.

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Registered Retirement Savings Plans (RRSPs) allow individuals to contribute pre-tax income into the plan, reducing their taxable income for that year. The funds within the plan grow tax-deferred until they are withdrawn in retirement, at which time they are taxed as income. Additionally, withdrawals can potentially be timed to occur during years of lower income in retirement, resulting in tax avoidance.

In Terms of Tax Planning, the Use of Registered Retirement