RRSP’s | RRIF’s | RESP’s
At Integris, we offer many different registered plans to assist you with all your financial needs. These plans can be used for retirement (RRSP/RRIF), education (RESP), disability (RDSP) or for special savings (TFSA). There are many different ways that you can choose to invest your RRSP, RRIF, or RESP. Our banking floor has access to many deposit options, while our Financial Planning division has many investing options through mutual funds, stocks and bonds.
Speak with an Integris professional today about your registered plan.
What is an RRSP?
An RRSP is a retirement savings plan that is registered with the Government of Canada. This plan allows you to save for the future with a tax-sheltered benefit. What makes this a great choice is that contributions are tax-deductible.
Who is eligible for a RRSP?
If you are an income earner under the age of 72, there are many ways in which an RRSP may benefit you.
What is the benefit of an RRSP?
There are many benefits to an RRSP:
- Tax breaks – By making contributions to your RRSP you will receive tax savings or a refund when you file your taxes.
- Tax-sheltered growth – Your RRSP will grow tax-free, because of the tax-shelter – this means that you do not have to claim interest earned on your tax return.
- Unused contribution room can carry forward – Unused contribution room carries forward for future years so you don’t have to worry about missing your chance to contribute. You may also choose to use this ‘carry forward’ strategically. For example, if you are anticipating a large raise or bonus, you could wait to claim your deduction which could significantly increase your tax savings.
- A variety of investment options – Think of your RRSP as a vehicle, and the people inside that vehicle as the investment options. You could choose a Term Deposit, a mutual fund, a stock, a bond or more. The options stretch far and wide, and all are dependent on what you choose. If you aren’t sure what will work best for what you want, speak with one of our Integris Professional or book an appointment today.
- Contribution simplicity – You can make contributions on a monthly basis in small amounts or all at once as a large sum before the yearly RRSP deadline. You may also decide to get an RRSP Loan – the choice is yours.
What is the Home Buyers’ Plan?
The Home Buyers’ Plan (HBP) allows you to temporarily withdraw up to $25,000 tax-free from your RRSP to buy or build a home. The funds must be repaid to the RRSP within 15 years with a minimum annual payment of 1/15th of the amount withdrawn. This program is available once only.Visit the Canada Revenue Agency (CRA) website for more details about the Home Buyers’ Plan or speak with an in-branch specialist today.
What is the Lifelong Learning Plan?
The Lifelong Learning Plan (LLP) lets you temporarily withdraw $10,000 per calendar year – to a maximum of $20,000 total, over a maximum four year period – tax-free from your RRSP to pay for school for you or your spouse. The borrowed funds from your RRSP must be repaid within 10 years with a minimum of 10% repayment per year.
For more information about the Lifelong Learning Plan speak with one of our Integris Professionals today or visit the Canada Revenue Agency (CRA) website.
When is the deadline for RRSP contributions?
Generally, the RRSP deadline falls 60 days into the calendar year; if however, the 60th day of the year falls on a Saturday or Sunday, the deadline will be extended to the following Monday.
What is an RRSP Loan?
An RRSP loan is a term loan where the proceeds of the loan are used as a contribution to your RRSP. Integris RRSP loans under $5000 are priced at prime for 12 months and prime plus 1% for 24 months. Any RRSP loan requiring a larger amount or longer term will be given Integris Relationship Pricing.
What is a RRIF?
A RRIF is a registered retirement income fund. As of December 31st in the year you turn 71, your RRSP will be converted into a RRIF. This RRIF is a Retirement Income Option that becomes your own pension plan – a plan that will give you income throughout your retirement.
What is the benefit of a RRIF?
- Tax–sheltered growth – Your RRIF will continue to benefit you with its tax-sheltered growth
- Income Flexibility – As long as you withdraw the legislated minimum amount annually, you can decide the amount and frequency of your payments.
- Spousal Transferability – when you pass on, your RRIF assets can transfer to your spouse or common-law partner tax-free
- Investment Flexibility – There are a large variety of investment options to choose from – Mutual Funds, stocks, bonds, term deposits, and more.
What are the requirements for a RRIF?
In the year you turn 71, you have until December 31st to turn your RRSP into a RRIF. Once your RRIF is created, there will be no more contributions allowed; however, the RRIF still maintains its tax-sheltered growth benefit. A RRIF requires that a minimum withdrawal be made per year (there is no maximum legislated withdrawal limit), and you can choose whether you take it as a lump sum or in payments. Speak with an Integris Professional or book an appointment for more information about RRIF’s.
A Benefit Guide:
|Tax Breaks - Contributions give you tax-savings on your income tax||There are no contributions allowed to a RRIF.|
|Tax-Sheltered Growth - growth is tax free|
|Contribution Carry-Forward - even if you don’t contribute, your benefit will carry-forward giving you opportunity in the future||There are no contributions allowed to a RRIF.|
|Investment Variety - Whether it’s a stock, bond, mutual fund, term deposit, or more, you can invest it in your RRSP|
|Your Contribution, Your Way - Contribute monthly; contribute in one lump sum, or contribute with an RRSP loan||There are no contributions allowed to a RRIF.|
|Withdrawals||Withdrawals are allowed at any time (but still dependent upon the investment option), however a mandatory with-holding tax will be processed by Integris for remittance to the Government of Canada||There is a minimum dollar value required to be withdrawn from the RRIF. There is no maximum. Speak with an Integris Professional for more information about your minimum withdrawal|
Resource Information – Get a copy of these detailed products
- 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
For more information on RRSP’s and RRIF’s please speak with an Integris Professional or visit the Government of Canada RRSP guide.
What is an RESP?
An RESP is a registered education savings plan for post-secondary education. Contributions to this plan are not tax deductible, but income and grants built up in the plan are sheltered from tax until they are withdrawn to pay for the beneficiary’s eligible post-secondary education.
Under the Canadian Education Savings Grant, the federal government will contribute 20% of the amount contributed each year to a maximum of $500 per year. Some families, based on income, may qualify for a higher percentage.
What types of options are available?
There are two different types of plans available for the RESP.
- Family plans can have multiple beneficiaries, all of which must be related by blood or adoption.
- Beneficiaries can be added, removed or changed at any time as long as the new beneficiary is related by blood or adoption.
- All named beneficiaries must be 21 or younger at the time of naming.
- Contributions must end when the beneficiary turns 31 years old.
- If a beneficiary listed on the plan does not pursue post-secondary education, the remaining beneficiaries may use those funds for their education; however, a beneficiary can only withdraw a maximum of $7,200 in grant funds. If the grant funds exceed this amount, and are not being used by another beneficiary on the plan, then the funds will be returned to the government.
- Single RESP plans may have only one beneficiary.
- The beneficiary can be any age when the plan is opened.
- Contributions made up to 31 years after the plan was opened.
- A beneficiary may be replaced without returning grant money as long as one of the following conditions are met:
- The new beneficiary is under 21 years of age and a sibling of the original beneficiary, or
- Both Beneficiaries are under 21 and related by blood or adoption to an original subscriber of the RESP.
What type of investment option is available for my RESP?
An RESP may be invested in several different ways. It may be invested in a deposit-type product in the form of a high-interest savings or a Term Deposit/GIC. An RESP may also be invested with a Financial Planning Representative in the form of Mutual Funds. Speak with an Integris Professional today or book an appointment for more information.