RRSP

At Erickson Credit Union we realize that not everyone is a financial expert. We are here to provide advise and information to our members to help you understand your options and choose the financial options that are best suited to your needs.

A Registered Retirement Savings Plan is a government-approved plan through which you save money for your retirement years. Your contributions, within limits, are tax deductible, and the income earned is tax sheltered.You can also have any number of plans.

It is important to start investing money when you can most afford it - during your peak earning years - to build up a comfortable retirement fund.

Erickson Credit Union offers RRSP's which are easy to understand. These plans also provide investment flexibility and are secure. A Registered Retirement Savings Plan is a tax sheltered savings plan that allows a tax break now, and allows you to tax shelter contributions and interest to provide an income for future years. Each dollar you contribute (subject to Canada Revenue Agency's limits) to your RRSP gives you a tax deduction for the same amount. When you take money out of your RRSP, it is then treated as taxable income, but you control when and how much you take out. This can be timed to occur when your income is lower.

Whether you invest in a Variable RRSP, where your interest rate varies with changing marketplace conditions, or a Fixed Term RRSP, where you earn a fixed rate of interest, with as little as $25 per month you can be well on your way to a comfortable retirement. So please, for your future, speak to any of our Financial Services Representatives to set you up with a plan that suits your lifestyle.

Fixed Term RRSP Features

• $500 minimum deposit
• Interest compounded annually
• Term of 12 months to 60 months
• Non-redeemable prior to maturity
• Highly competitive rates

Variable Term RRSP Features

• No minimum deposit
• No penalties for early withdrawal
• Rate of interest varies with current rates and is always competitive
• Interest compounded and paid every June and December
• Automatic deposits free of charge
• May be transferred to a fixed plan at any time

Mutual Funds*

Erickson Credit Union members have access to Ethical Funds® through Credential Asset Management Inc.

Tax Tip
An RRSP may be set up by a higher income earning spouse on behalf of the lower or no income spouse. If these funds are held on deposit for three years with no further deposits or withdrawals the lower income spouse may withdraw these funds and consider them to be his/her earned income, even though the higher income spouse used it as a deduction in the year of deposit. This is considered a spousal RRSP.

There is a transfer out fee per term if you transfer your RRSP to another financial institution. If you have a RRSP elsewhere, we will transfer your RRSP to the ERICKSON CREDIT UNION simply and easily and we will pay any transfer fee of up to $25.00 per plan.

An Erickson Credit Union RRSP may be transferred to an E.C.U. RRIF in mid-term.

Funds may be deposited until the end of the calendar year in which the individual turns 71.

Funds must be withdrawn or transferred to a retirement option by no later than the end of the year in which the individual turns 71.