It is a tax advantageous strategy for high income earners who want to save taxes today and save for their retirement as well. An RRSP is a retirement savings plan that you establish, registered by Canada Revenue Agency (CRA), and to which you or your spouse or common-law partner contribute (according to the limits). Deductible RRSP contributions can be used to reduce your tax. Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.