Photo by Jeannette Crone

An RRSP is a federal government-approved plan in which the depositor can save for retirement. Contributions are made within pre-defined limits and the income earned on RRSP deposits are tax sheltered until the funds are withdrawn.

Your Notice of Assessment from Canada Revenue Agency that you receive after filing your tax return will indicate your RRSP deduction limit for the following tax year. This amount will depend on whether you are a member of a pension plan and if you are, the type of pension plan.

For specific information about your RRSP deduction limits, visit the Canada Revenue Agency on the web at www.cra-arc.gc.ca or phone the toll free TIPS line at 1-800-267-6999.

When a member purchases an RRSP investment it allows them to claim a tax deduction for the amount of the annual contribution. This will reduce their overall taxable income. Before making any RRSP deduction, make sure you will still be fully utilizing your available tax credits for the year.

For more information on RRSPs please contact our Member Services department.