Drawing Conclusions: How making an RRSP contribution lowers your tax bill

Contributing to a registered retirement savings plan (RRSP) can reduce your tax bill. Here's how it works: If you pay your taxes throughout the year and make an RRSP contribution, you can get a refund at tax time. If you had tax owing, an RRSP contribution can lower that amount.

Still confused? Watch this video for a more detailed explanation.