What is one advantage in participating in a registered retirement savings plan?
A) You always pay taxes on these contributions during the year you contribute.
B) You are allowed to contribute 50% of your income.
C) Time value of money does not apply.
D) The amount you deposit can be used as a deduction on your income tax.

Question

Quizplus · Accepted Answer

One advantage of participating in a registered retirement savings plan (RRSP) is that the amount you deposit is tax-deductible. This means that you can lower your taxable income and potentially receive a tax refund.

What Is One Advantage in Participating in a Registered Retirement