RSP vs RRSP: Are They the Same Thing?

RSP and RRSP are the same account. “RSP” is the informal shorthand that banks and employers use; “RRSP” is the statutory name in the Income Tax Act, section 146. The full name is Registered Retirement Savings Plan. There is no separate “RSP” product, no different tax treatment, and no scenario where the distinction matters on a Canadian tax return. The reason the question exists is that financial institutions, especially employer group plans, often drop the first R and call it a “group RSP” or just “your RSP” on statements and enrollment forms, which creates the impression that it might be something different.

Why do some institutions call it an RSP?

Marketing and simplicity. “RRSP” has four letters and the first two are the same, which is awkward in casual speech. Banks, payroll providers, and HR departments shorten it to “RSP” the same way people shorten “Registered Education Savings Plan” to “RESP” rather than saying all four words. The CRA’s own publications use “RRSP” consistently because that is the statutory term, but there is no regulatory requirement that financial institutions use the full name on client-facing documents.

• Group RRSPs administered by employers are especially likely to use “RSP” because the payroll deduction model makes the account feel like a workplace benefit rather than a personal tax vehicle, and “group RSP” reads more naturally than “group RRSP” in employee enrollment materials.
• The underlying registration with the CRA is identical.

Does the CRA treat them differently?

No. There is one registered retirement savings plan regime in Canadian tax law, defined in ITA 146. Every RRSP, whether called an RSP, a group RSP, a self-directed RRSP, or a spousal RRSP, is registered under the same provision and governed by the same rules: contributions are deductible under ITA 146(5), growth is tax-sheltered under ITA 146(4), and withdrawals are included in income under ITA 146(8). The contribution room is the same regardless of whether you contribute to an individual RRSP or a group plan.

• The one distinction that does matter on the Canadian side is between an RRSP and an RRIF (Registered Retirement Income Fund). An RRIF is a separate vehicle under ITA 146.3 that you convert your RRSP into, no later than December 31 of the year you turn 71, to begin mandatory withdrawals.
• The RRIF is a different registration, a different ITA section, and a different tax form (T4RIF rather than T4RSP). But RSP versus RRSP is not that distinction.

What does the US do with my RRSP?

This is where the naming question actually matters, because the IRS does not recognize the RRSP’s tax-deferred status by default. Without an affirmative election, the IRS taxes the growth inside the RRSP (interest, dividends, capital gains) on a current basis, every year, even though you made no withdrawal.

• The fix is the treaty election under Article XVIII(7) of the Canada-US tax treaty, which tells the IRS to defer taxation on the RRSP’s growth, matching the Canadian treatment. Once made, it carries forward indefinitely.
• The election is available only for plans that qualify as a “Registered Retirement Savings Plan” or a “Registered Retirement Income Fund” under the treaty. Since RSP and RRSP are the same plan, the election covers both.
• The election used to require a specific statement attached to your US return. Under Rev. Proc. 2014-55, the IRS treats the election as automatically made for eligible individuals.
• If your situation is non-standard (late filing, amended returns, or a streamlined catch-up), you should verify the election is in place rather than assuming it.

What about a group RSP through my employer?

A group RRSP (commonly called a “group RSP” on payroll documents) is an RRSP registered under ITA 146, administered through the employer’s payroll system. Contributions are deducted from your pay before deposit, which gives the illusion of pre-tax treatment, but the mechanics are different from a 401(k). The contribution comes from after-tax pay (the employer deducts it from gross but also reduces the tax withheld at source), and you claim the RRSP deduction on your T1 return.

• The employer may match part of your contribution; the match goes into your RRSP or a companion DPSP (Deferred Profit Sharing Plan, ITA 147), not a separate vehicle.
• For US tax purposes, the group RRSP is treated identically to an individual RRSP. The treaty election under Article XVIII(7) covers it.
• The FBAR and Form 8938 reporting obligations apply, since the RRSP is a foreign financial account.
• If the employer match goes into a DPSP, that is a separate plan under ITA 147 and may require its own analysis, but the group RRSP portion is straightforward.

Is a spousal RRSP different?

A spousal RRSP is registered under ITA 146(1) like any other RRSP. The contributing spouse claims the deduction, and the annuitant spouse owns the plan. The attribution rules in ITA 146(8.3) mean withdrawals within three calendar years of the last contribution are taxed to the contributor, not the annuitant. But structurally, it is the same registered plan, and the US treaty election covers it the same way.

• The cross-border wrinkle is that if the contributing spouse is a US person filing a US return, the contribution is not deductible on the US side (there is no US deduction for RRSP contributions).
• The treaty deferral only shelters the growth from current US taxation. This is the same rule that applies to every RRSP contribution made while you are a US person.

What should I do next?

If you are a US person with an RRSP (whether your statement calls it an RSP or an RRSP), the three things to confirm are: the treaty election is in place, the account is reported on your FBAR and Form 8938 if applicable, and the investments inside the RRSP are not PFICs (Canadian mutual funds held inside an RRSP are shielded from PFIC taxation by Reg. 1.1298-1(c)(4), but the analysis should be confirmed).

• RRSP vs 401(k): how they compare cross-border
• What happens to my RRSP if I move to the US?
• RRSP for non-residents after leaving Canada
• Streamlined filing and Canadian accounts
• RRSP/RRIF beneficiary designation on death
• Does my Roth IRA stay tax-free in Canada?

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.