Registered Retirement Savings Plan (RRSP)

A RRSP is a government approved plan used to save money for retirement. Contributions, within limits, are tax deductible, and the income earned is tax sheltered. This means that your taxable income can be reduced each year that contributions are made, thus paying less income tax.  RRSP withdrawals are subject to tax at the time of withdrawal.

The maximum RRSP contribution that you can make is noted on your Notice of Assessment on your income tax return, or alternatively you can call Canada Revenue Agency. RRSPs can also be used to fund education through the Lifelong Learning Plan or to buy a house through the First Time Home Buyers Plan.

The features of a RRSP include:

  • Any Canadian citizen aged 71 or less with eligible income may contribute to a RRSP
  • Contributions within limits are tax deductible, the income earned on RRSP investments is tax sheltered until you withdraw the funds
  • Within parameters RRSPs can be used to fund your education through the Lifelong Learning Plan
  • Within parameters RRSPs can be used to fund the purchase or construction of your primary residence (if you have not owned a home within the past 5 years)
  • Members may choose from a range of RRSP eligible investments through Aldergrove Credit Union or Aldergrove Financial Planning
  • You can contribute to your RRSP at any time during the year
  • Any contributions made during the first 60 days of the year can be used as a tax deduction in either the current tax year or the previous tax year

The benefits include:

  • memberSHARE Loyalty Program eligible. RRSPs are a qualifying product for the Product Bundle payment, and are aksi eligible for a bonus on deposit interest earned when approved for payment
  • Increasing your retirement savings will provide tax benefits
  • Take advantage of tax benefits knowing that the funds can be withdrawn to purchase a home or go to school with minimal or no tax implications. In the event of an emergency withdrawals may be made from your RRSP in whole or in part provided the investment option is redeemable at the time - withdrawal is taxable
  • Generally a person’s income is less when they are retired so the tax implications are less when withdrawing RRSPs at that time. RRSP contributions can be made to a spousal plan to lower the tax implications a couple must pay when withdrawing funds known as income splitting
  • Aldergrove Financial Planning can help you determine whether you are on the right path to a comfortable retirement and if not help you get there
  • The Credit Union Deposit Insurance Corporation of British Columbia, a statutory corporation, fully guarantees all deposits

To learn about the difference between RRSPs v.s. TFSAs click here.


Find Branch/ATM

Enter address, postal code or branch name