RRSPs

Registered Retirement Savings Plans provide tax benefits for retirement savings in Canada. RRSPs allow Canadian’s to shelter financial property from income taxes

How it works

With an RRSP you contribute a portion of your income to the plan and the government reduces your taxes owing each year. In addition to the up-front tax savings RRSP's offer other advantages. Interest and other income generated by money invested in an RRSP is tax deferred. As a result, it’s as if money in an RRSP is earning a higher interest rate just because you’re not losing those extra percentage points to taxes. To be clear, you do eventually pay tax on the money in your RRSPs. Whenever you withdraw money from an RRSP the money you withdraw is treated as new income, and you pay tax on it as if you’d just earned it.

General RRSP Rules

  • Canadians are allowed to make contributions to their RRSPs from ages 18 to 71

  • At age 71 your RRSP must be rolled over to another investment vehicle or withdrawn

  • If you withdraw funds from your RRSP tax is withheld at an amount that is determined by your withdrawal, and the amount of the full withdrawal is added to your income in the year it is withdrawn

  • Unused contribution room is carried forward

Products Available for RRSPs

The Biggar and District Credit Union provides access to several products which are RRSP eligible. These include registered savings accounts, term deposits, Index/Equity Linked deposits, and through Credential® you have access to mutual funds*, stocks and bonds*, and segregated funds**. Other products are available for deposit.


Speak to your representative to determine which is right for you

*Mutual funds are offered through Credential Asset Management Inc. and mutual funds and other securities are offered through Credential Securities 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, cash balances, mutual funds and other securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in the credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated. Credential Securities Inc. is a Member-CIPF. ®Credential is a registered mark owned by Credential Financial Inc. and used under licence.

**Credential Financial Strategies Inc. offers financial planning, life insurance and investments to members of credit unions and their communities.
 

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