RRSP & RRIF

RRSP Expand/Collapse

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When money is withdrawn from an RRSP it is taxed as income. If that money is withdrawn in retirement, your tax rate is likely to be lower than at peak earning periods resulting in a lower tax bite.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 December 31st of the year in which they turn 71, 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 71.

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 rates, fixed terms and Performance Products*. All are secure investments at competitive rates, covered by our 100% Guarantee.

Direct automatic deposits can be made each payday (weekly, bi-weekly, semi-monthly 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 provides 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 us today for rates and additional details.

Mutual funds are offered through Credential Asset Management 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 or guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.  Their values change frequently and past performance may not be repeated.

®Credential  is a registered mark owned by Aviso Wealth Inc. and is used under licence.

RRIF Expand/Collapse

What are RRIFs?

The Registered Retirement Income Fund is an excellent retirement option for most Canadians because it is tailored to meet individual needs. A RRIF can be described as a mirror image to an RRSP. The difference is that a RRSP is designed for accumulation of assets, while a RRIF is designed to distribute those assets in the form of retirement income.

The source of funds for your RRIF is your RRSP. Once you have transferred your money from your RRSPs, which needs to done by the end of the year in which you turn 71, you may set up a withdrawal plan to suit you retirement needs. There is no maximum limit for withdrawal, however, the minimum amount is specified by a formula based on your age.

RRIF investments are sheltered from tax, so they grow quicker than non tax-sheltered investments.

All withdrawals are subject to tax.


Investment Options

Choose between 1 to 5 year fixed term investments at competitive rates, all covered by our 100% Guarantee.

The Credit Union also provides 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 us today for rates or more details.

Mutual funds are offered through Credential Asset Management 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 or guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.  Their values change frequently and past performance may not be repeated.

®Credential  is a registered mark owned by Aviso Wealth Inc. and is used under licence.
 

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