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Difference between a 401k and a Canadian RRSP?

Good morning, Mohammad. I read about 401k and Canadian RRSP. They appear to me in similar perspectives with different names. Do you think they have any difference?

Both the 401k and the Canadian RRSP provide monetary savings for retirement.

Some Similarities Are:

Both can be invested and can increase a retirement account.
They are tax-deferred
They have annual contribution limits
They provide access to a combination of investments

Some Differences:

– An RRSP account doesn’t penalize an account holder for early withdrawals for Canadian tax purposes, but in the US you could be taxed 10% for an early withdrawal on top of regular income tax.

– Unused RRSP contribution limits can carry over to next year, but a 401k does not allow rollover contributions.

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