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Registered Retirement Savings Plan

What   Offers members the opportunity to build their long-term financial strategy while saving on taxes by investing for retirement
Who   Personal Members
Period   Until December 31st of the year you turn 71
Registration Deposit   Maximum contribution for the 2017 tax year is $26,010, or 18% of your previous year’s earned income less any applicable adjustments*

The Registered Retirement Savings Plan (RRSP) is a government approved savings plan through which you set aside finance for your future retirement years. By doing so, any income or financial growth you earn is tax deferred until you withdraw money from the plan.

  • There is a maximum contribution limit allowed for the year.
  • The amount you can contribute is 18% of your previous year’s earned income, less any pension adjustments, up to the maximum contribution limit allowed for the year*.
  • Members have a choice of Deposit Type or Mutual Fund** Type products for RRSPs.
  • Any profits made on investments in the form of interest are not taxable to you as income until withdrawn.
  • There is a deadline for RRSP contributions – within the first 60 days of the new year.

Annual Limits Trends

Year Limit
2006 $18,000
2007 $19,000
2008 $20,000
2009 $21,000
2010 $22,000
2011 $22,450
2012 $22,970
2013 $23,820
2014 $24,270
2015 $24,930
2016 $25,370
2017 $26,010


Why get it

  • Based on your contribution and the tax rate you pay, you may be eligible for a tax refund and the amount you contribute is tax sheltered.
  • The sooner you begin saving, the more years you have to accumulate compound interest on your savings.


Any and all amounts withdrawn from the plan are subject to classification as taxable income. There are some exceptions and instances where funds may be withdrawn tax free, such as $25,000 for first-time home buyers.

Please visit the Canadian Revenue Agency website for further details http://www.cra-arc.gc.ca/


Transferring RRSPS
It is possible to transfer any existing RRSP plans with other financial institutions to Sharons Credit Union and vice versa. However, penalties are applicable for RRSPs transferred out of Sharons Credit Union.


Contribution Limit*
Each year Canada Revenue Agency sends you a notice of assessment, indicating your RRSP contribution limit for the current year.


Deposit Security
At Sharons Credit Union, depositors are 100% protected by the Credit Union Deposit Insurance Corporation of British Columbia.


**Mutual funds are offered through Credential Asset Management Inc. Unless otherwise stated, cash balances, mutual funds and other securities are not covered by Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.

CRA – RRSP more details