RRSPs
What are RRSPs?
The Federal Government created Registered Retirement Savings Plans in 1957 to encourage people to save for retirement; the incentive comes in a form of tax deductions. Contributions made to an RRSP are deductible from income for tax purposes, which results in reducing personal taxation for the year.
Income earned within an RRSP is allowed to accumulate untaxed. Interest is compounded; therefore the income earned over a lengthy period of time can be astounding.
When money is withdrawn from an RRSP it is taxed as income. If that money is withdrawn in retirement, your tax rate is likely to be lower than at peak earning periods resulting in a lower tax bite.
Although any Canadian with earned income can contribute to an RRSP until age 69, there are limits to the amount of yearly contributions. The amount you can contribute in a given year is known as contribution room. You are allowed to carry forward unused contribution room. Your previous years tax return will provide you with this information.
An RRSP must be wound up by the end of the year in which you turn 69.
Contributions eligible for inclusion on tax returns can be made throughout the year or in January or February of the following year.
RRSP investments are sheltered from tax, so they grow quicker than non tax-sheltered investments
RRSP Investment options
Choose between Variable, Easy Access, Fixed Term, Rate Hikers* or Performance Products*. All are secure investments at competitive rates, covered by our 100% Guarantee
*Rate Hikers and Performance Products are only available during the RRSP season.
Direct automatic deposits can be made each payday or monthly to avoid the burden of lump sum deposits.
RRSP Powerline loans are also available for your convenience. Loan interest on an RRSP is not tax deductible
The Credit Union also has access to Mutual Funds. Choose from Balanced funds, Bond Funds, Dividend Funds, Equity Funds, Income Funds or Money Market Funds through our partnership with Credential Asset Management Inc.
Contact the Credit Union today for rates or more details.
Disclaimer
†Mutual funds are offered through Credential Asset Management Inc. Unless otherwise stated, mutual fund securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit issuer that insures deposits in credit unions. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.