RRSPs

What is an RRSP?

A Registered Retirement Savings Plan (RRSP) is a government  approved plan that allows you to save money for your retirement. Your contributions are tax-deductible and the income earned is not taxable while it is in the plan.

Integris Credit union offers RRSPs with redeemable and non-redeemable fixed interest rates. A fixed rate plan and a stated rate of return is maintained throughout your investment, providing you with the security of knowing what your investment will be worth at maturity.

A number of different terms are available and our Financial Services Representatives can discuss the benefits of the various options with you. Deposit Insurance

*Mutual Fund RRSPs are similar to standard Mutual Funds, but in this case the funds are purchased within the RRSP. Any income or capital gain produced within an RRSP Mutual Fund is usually reinvested within that fund. Talk to a Mutual Funds Specialist at Integris Financial Planning Services about Mutual Fund eligible RRSPs.

To maximize the return on your RRSP, you can make contributions on an on-going basis. Doing so balances your purchases - you invest regardless of whether interest rates and stock values are high or low - buying more during lows and less during highs. By investing throughout the year, you are contributing to your RRSP earlier than if you were to make one lump payment as the RRSP deadline approaches. Weekly, biweekly and monthly deposits of as little as $50 can be made automatically, transferred from your choice of account.

*Mutual funds are offered through DWM Securities Inc. Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured nor guaranteed, their values change frequently, and past performance may not be repeated.

Who is Eligible to Contribute

Anyone with "earned income" subject to Canadian taxation, including non-residents, may contribute to an RRSP. Even if you are not taxable, you should file a tax return to report your earned income and create RRSP deduction room. Also, you can make part or all of any contribution to a plan in your spouses' or common-law partner's name. You as the contributor, are still entitled to the tax deduction.

In the recently approved 2007 federal budget, the maturity age for RRSPs was extended to age 71 (previously the age was 69). You now have until December 31st of the year in which you turn age 71 to convert your Registered Retirement Savings Plan to a Retirement Income option. We recommend that you get all the information you can before making important decisions about your retirement savings. We will be happy to discuss the options available to you and help you implement any changes. For more information, please contact your branch.

How much should you be putting into an RRSP each year?

Gain an advantage with an RRSP Loan

By contributing to an RRSP you can benefit from income tax savings at year end. These tax savings can help offset the cost of borrowing.

To help you meet your retirement goals RRSP loans are available at competitive interest rates.

Use RRSPs to buy your first home

The Federal Home Buyers Plan* allows first-time home buyers to withdraw up to $20,000 from your RRSPs to buy or build a home. Both you and your spouse can participate in the Plan and withdraw up to $20,000 each from your own RRSPs. No tax will be withheld on those amounts nor will you have to claim the amount as income. The monies must be repaid to the RRSP within 15 years with a minimum annual payment of 1/15th of the amount withdrawn.

*Visit the Canada Revenue Agency website for complete details and requirements.

Use RRSPs for training or education

Through the federal government's Lifelong Learning Plan*, you can use your RRSPs to fund full-time education or training for you, your spouse or common-law partner. Up to $10,000 per calendar year can be withdrawn, to a maximum of $20,000. You do not have to include the withdrawn amounts in your income, and the RRSP issuer will not withhold tax on these amounts. However, you do have to repay these withdrawals to your RRSPs within 10 years.

*Visit the Canada Revenue Agency website for complete details and requirements.

Resource Information - Get a copy of these detailed product booklets at any branch of Integris Credit Union

  • Understand the Basics RRSP, RRIF, Annuity, LIF, LRIF
  • Taking Control of Your Future - RRSP
  • Knowing Your Retirement Income Options
  • Planning for Your Retirement
  • Designations of RRSP and RRIF - Facts to consider
 
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