Registered Retirement Savings Plans (RRSPs)
An RRSP is an investment in your future, with benefits you can enjoy today. By contributing to an RRSP, you can take advantage of substantial tax savings now, and enjoy peace of mind in knowing you'll have secure retirement funds in your future. Plus, investing in an RRSP is a great way to reduce your taxable income. Our financial professionals can work with you to create the right retirement plan for you. We recognize that sometimes it's tough to come up with the cash before the deadline for contributions. Credit Unions can help you set up an automatic monthly savings plan. Or with an RRSP loan we'll show you how the cost of borrowing can actually be offset by your tax savings at year end.
From self-managed RRSPs to those that are fully managed by our Credit Union professionals, you’ll find an RRSP solution that fits your needs.
RRSP Quick Facts…
Who can contribute to an RRSP?
If you have earned income, you can contribute to an RRSP up until December 31 in the year you turn 71.
How much can you contribute?
You can check your limit on the Notice of Assessment that Canada Revenue Agency sent you after processing your tax return last year. Your RRSP contribution limit is noted there, including any unused room.
The Tax Information Phone Systems (TIPS) will also give your current contribution limit. (Call Toll Free: 1-800-267-6999). You must have your SIN and your previous year’s tax return handy.
Contributing In-kind
If you don’t have the cash available to make your contribution, you can contribute securities you hold outside of your RRSP.
Your “in-kind” contribution will be equal to the fair market value of the security when it is contributed.
Spousal RRSPs
All or a portion of your contribution can be made to a spousal plan if your spouse has a lower income, but as the contributor, you get the deduction.
Contributing to a spousal RRSP can be an effective way of income splitting, since the income that will be eventually withdrawn from the RRSP will be taxed in the hands of the spouse who will be in a lower tax bracket.
Contribution Carry Forwards
You can carry forward unused contribution room from 1991 onwards. This means that if you did not make your maximum contribution in any year since then, the leftover amount can be added to your current contribution limit.
So what do you do when you have maximized your RRSP contribution? Click here to learn more about Tax-Free Savings Accounts
Want to keep more of the dollars you earn?
We can give you the tools you need to achieve your financial goals. To learn more about how to use RRSPs to your advantage, click here to find a Credit Union near you…
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