don’t worry, an RRSP can help you retire happy

Whether you’re dreaming of sitting on the dock at the cottage with your feet dangling in the water, traveling the world, or just spending time with the grandkids, it’s never too late to start saving for your retirement plans with RRSP contributions.


What is an RRSP?


A Registered Retirement Savings Plan (RRSP) is a government-approved plan through which you save money for your retirement years. It is the single biggest tax break available to Canadians. As a federally regulated program to encourage tax savings, RRSPs have special tax benefits that defer current income tax, potentially accelerating the accumulation of savings. It allows you to have peace of mind knowing that you will have income throughout your retirement. And, once you retire, you have many options for taking out your money, while maximizing tax savings.


How does an RRSP work?


How about we take this step-by-step:


  1. Invest in any number of RRSP eligible products.
  2. Your RRSP contribution will be processed.
  3. At the end of the year, you will receive an official receipt.
  4. You can:
    1. Include the receipt with your tax return for the year to reduce your taxes, or
    2. Choose to carry it forward for use in future years.

Your contributions, within limits, are tax-deductible and the income you earn is tax-sheltered meaning that it won’t be added to your taxable income until withdrawn.


Who is eligible to contribute to an RRSP?


Anyone with earned income subject to Canadian taxation, including non-residents, may contribute to an RRSP. Even if you are not in a taxable position, you should file a tax return to report your earned income and create deduction room.


Keep in mind, RRSPs must be de-registered by the end of the year in which you turn 71. You can either take the money out, purchase an RRIF, or an annuity. And, just like our other investment products, all your RRSP deposits are guaranteed without limit by the Deposit Guarantee Corporation of Manitoba.


Can you borrow money from your RRSP for other purposes?


You bet! With the Home Buyers’ Plan, the federal government program allows you to borrow money from your RRSP to buy your home. You will need to meet certain conditions, like repaying the money within a period of no more than fifteen years. Under this plan, you can withdraw up to $35,000 (or $70,000 per couple) tax-free from your RRSP savings and apply it towards a down payment on your home.


Through the Government of Canada’s Lifelong Learning Plan (LLP), you can also withdraw up to a total of $20,000 (up to $10,000 in a calendar year and up to $20,000 total) from your RRSPs to finance you or your spouse or common-law partner’s full-time training or education. Similar to the home-buyers’ plan mentioned above, you’ll have to pay back what you borrow within a certain period of time, in this case, no more than ten years.


Ready to start contributing to your RRSP?



Please note: some fees may apply for partial or full transfer outs. Please see our service fees here.

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