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Similar to how Tax-Free Savings Accounts (TFSAs) work, if you don’t have the money to contribute to your Registered Retirement Savings Plan (RRSP) in any given year, you can carry forward your RRSP contribution room and use it in the future. The amount of RRSP contribution room is based on earned income, up to certain limits. Learn more about how RRSPs work.

Unlike TFSAs, if you withdraw from an RRSP (except when using government programs like the Home Buyers’ Plan or Lifelong Learning Plan), you will permanently lose the contribution room. Learn more about making withdrawals from an RRSP before you retire.