For qualified individuals, a contribution to a registered retirement savings plan (RRSP)will be
A)a tax credit.
B)a deduction from total income.
C)an employment expense.
D)a deduction from federal tax payable.

Question

Quizplus · Accepted Answer

A contribution to an RRSP is considered a deduction from total income, reducing the amount of taxable income for the individual. This can result in a lower amount of tax owed at the end of the year. It is important to note that this is a deduction, not a tax credit, and therefore the tax savings will be proportional to the individual's marginal tax rate.

For Qualified Individuals, a Contribution to a Registered Retirement Savings