What does the Canada Revenue Agency do with RSP applications?
The Canada Revenue Agency (CRA) reviews RSP applications against its criteria for registration of a plan, and registers those RSP applications that qualify for registration under the Income Tax Act (Canada). Upon registration, an RSP becomes an RRSP, a Registered Retirement Savings Plan. A Canadian taxpayer with an RRSP can then deduct their RRSP contributions from their taxable income on their tax return for the applicable tax year.