Retirement Planning
Registered Retirement Savings Plan (RRSP)
Contributions within your limits are tax deductible and interest earned is tax sheltered until it is withdrawn. By maximizing your RRSP contribution you can reduce the income tax you owe. Benefits include:
- 30 day rate guarantee on RRSP transfers to Common Wealth Credit Union (CWCU).
- RRSP loans and lines of credit for purchasing a new RRSP or topping up an existing one. If you choose a line of credit, you can take advantage of retirement investments at your convenience.
- set up weekly, bi-weekly, monthly or quarterly contributions (minimum $25 per transaction) to build tax-sheltered savings.
Registered Retirement Income Funds (RRIF)
By the end of the year when you turn 71 you will need to convert your RRSP into a Retirement Income Option. A Registered Retirement Income Fund (RRIF) will likely provide you with the most flexibility because:
- funds in a RRIF remain tax-sheltered until withdrawn
- you choose the payment amount provided it meets the Canada Revenue Agency’s minimum requirement
- in the event of your death, funds can be rolled over to your surviving spouse tax free.
