RRSPs

Regardless of your income level, with the right advice and tailor made plan, you can enjoy your retirement. The most important considerations when planning for retirement are security, flexibility, and growth potential. At your Credit Union, we can help with expert advice and together, figure out the most affordable way for you to start investing in your future!

Maximize future returns. Save on taxes. Earn more interest. It's that simple. We can help you understand RRSPs, show you the different investment options available, explain the short and long term benefits, and tailor an RRSP plan that's focused on your future.

  • Save more sooner and retire earlier with compounding interest.
  • Variable and Fixed Rate plans available.
  • Fixed term RRSPs available from 1 to 5 years
  • Personal and Spousal RRSPs available
  • Redeemable option available at time of investment\
  • Secure investment with principal and interest guaranteed.

Your Credit Union is a member of the Credit Union Deposit Guarantee Corporation (CUDGC), which provides $250,000 coverage on all Registered investments( RRSPs, RRIFs, TFSAs) with your Credit Union.

Want to learn more?
At your credit union, your success is our success. That's why we're always looking for ways to help you grow your nest egg, save for the important purchases in life, and make sure you're ready for a rainy day.

Putting more away can be easy, at any stage. Take a minute to think about what stage of saving you're in…

First Timer

Getting your savings started.
You're hitting the ground running. You've landed your first “real” job, you're getting married, or starting a new family—or maybe all three! It's an exciting time in your life. And it can be difficult to think about saving for your retirement when everything is just beginning. But this is the perfect time, because time is on your side.

Builder

Growing your savings.
Your life is at its busiest. Your kids are growing and always going, your career is in full swing, you're there for your friends, parents, community, and even manage some time for yourself occasionally. Most likely you've been contributing to a savings plan for some time now. But when's the last time you took a second look at your plan to make sure it's working as hard as you are?

Retiring Soon

Managing your savings.
You're almost there! You've worked hard, saved smartly, and soon it'll be time to enjoy a well-deserved retirement. But now that you're in the homestretch of your retirement savings plan, there a few things well worth taking the time to consider.

 



Quick Reference: TFSA vs. RRSP

Choosing between saving your money in an RRSP or a TFSA doesn’t have to be complicated. There are no wrong answers—it’s all about what works and makes sense for you. The financial experts at your local credit union can help you walk through which option is best. In the meantime, we’ve compiled a helpful comparison you can review before your appointment.

 RRSPTFSA

Annual Contribution

The 2018 contribution limit is $26,230 or 18% of your earned income from last year, plus any unused contribution room carried forward from previous years.

Contributions can be made until December 31 of the year you turn 71.

There are lots of factors that can affect your RRSP contribution room. You can find your available contribution room on your most recent Notice of Assessment or by contacting the CRA.

The 2019 contribution limit is $6,000, plus any unused contribution room from previous years. This also includes any amounts you have withdrawn in the previous calendar year. You must be 18 (19 in certain provinces) to open a TFSA. There is no maximum age for contributions.

Withdrawals and changing TFSA contribution limits can affect your contribution room. You can find your available contribution room on your most recent Notice of Assessment or by contacting the CRA.

Making Withdrawals

Outside of certain kinds of fixed-term investments, you can withdraw from your RRSP at any time. However, you will be issued a tax slip and must claim any withdrawals you make as income on your taxes.

Money withdrawn from an RRSP is subject to a tax at the time of the withdrawal called a withholding tax. The amount of the withholding tax is between 10–30% and is calculated based on the amount taken out.

There are a few exceptions: you may be eligible to withdraw from your RRSP tax-free to help purchase a home under the Homebuyer’s Plan or to further your education under the Lifelong Learning Plan. There are maximum amounts that you can withdraw under these programs and any money taken out will need to be paid back over a set period of time in order to avoid having the funds becoming taxable income. You can find more information on these programs by talking to a financial expert or by contacting the CRA.

Outside of certain kinds of fixed term investments, you can withdraw from your TFSA at any time, without tax consequences. This includes any money that your investments have earned within your TFSA.

Any amounts withdrawn, including money that your investments have earned, cannot be re-contributed to your TFSA until the following year.

If you have further questions, please refer to your Notice of Assessment or contact the CRA.

Replacing Withdrawals

Once you make a withdrawal from your RRSP, you will never be able to recontribute that amount (except for the two exceptions mentioned above).

In most cases, it is not recommended to withdraw from your RRSP until you retire. If you are considering making an early withdrawal, please visit your financial expert, who can help you decide whether making a withdrawal makes sense for you.

Unlike an RRSP, amounts withdrawn from your TFSA will be added back to your TFSA contribution room at the beginning of the following calendar year.

If you have available contribution room outside of the amount you’ve withdrawn, you can continue to contribute to a TFSA in the same year you make a withdrawal.

Contribution Deadline

Contributions for 2018 can be made up to 60 days into the new year.

The 2018 contribution deadline is March 1, 2019.

Contributions made after the deadline are eligible to be deducted from your income the following tax year.

None. Contributions to a TFSA are not tax deductible.

New maximum contribution room (along with room created from the previous year’s withdrawals) begin on January 1 and follow the calendar year.

Over Contributing to Your Plan

Though it is not recommended to over-contribute to your RRSP, there is a one-time $2,000 allowance for over-contributions.

Any over-contributions to your TFSA will result in a penalty until they are removed or more contribution room becomes available.

Charges are 1% per month of the amount you over-contributed by (i.e. if you over-contributed by $1,000, you would be charged a penalty of $10 per month).

Transfers

Transfers between financial institutions or changes to your investments within your RRSP are not considered withdrawals and are therefore not subject to tax.

Transfers between financial institutions or changes to your investments within your TFSA are not considered withdrawals and are not factored into your TFSA contribution room.

Carry-Forward Amounts

You can carry forward all unused contribution room.

Your available RRSP contribution room is shown on your Notice of Assessment.

You can carry forward unused contribution room from previous years.

Any withdrawals you made will be added back to your TFSA contribution room at the beginning of the following year.

Your available TFSA contribution room is shown on your Notice of Assessment.



Click here to view our quick gude for TFSA vs RRSP (PDF)
 

Find Branch/ATM

Enter address, postal code or branch name

Year
Contribution
Limit
2013 $23,820
2014 $24,270
2015 $24,930
2016 $25,370
2017 $26,010
2018 $26,230
2019 $26,500
2020 $27,230
2019_TFSA_vs_RRSP Quick Guide for Members.pdf