Registered Products Offered Through Concentra Financial
Registered Retirement Savings Plans (RRSPs)
An RRSP is a tax-deferred vehicle for retirement savings. RRSPs not only save you tax today, they can also be used to make a down payment as a first-time home-buyer, or to finance your post-secondary education.
Any resident of Canada who has earned income and is under the age of 72 may contribute to an RRSP within limits set out in the Income Tax Act. Contributions to an RRSP reduce your taxable income and are not taxed until you withdraw the funds. To determine your RRSP contribution limit for the current year, review your Notice of Assessment from the Canada Revenue Agency which you would have received after you filed your last year’s income tax return.
A spousal RRSP allows one spouse, typically the higher income earner, to make RRSP contributions on behalf of their spouse. For example if you earn significantly more income that your spouse, you have more taxable income and fall in a higher tax bracket. You should consider allocating future taxable income as evenly as possible between you and your spouse or common-law partner. This is commonly known as “income-splitting”.
You have until March 1 (or February 29 in a leap year) to contribute to your RRSP and count the contribution as a deduction against your previous year’s income. Once this date has passed, RRSP contributions are only deductible against your taxable income for the current (or any subsequent) year.
Contributions made between January 1 and March 1 (or February 29 in a leap year) can be deducted against either the previous year or the current year.
Term deposits or variable deposits can be held in a Concentra Financial RRSP. You can make lump sum contributions or pre-authorized regular contributions. Contact us today to discuss your investment needs.
Registered Retirement Income Funds (RRIFs)
Converting your RRSP or Registered Pension Plan to a RRIF provides you with a regular stream of income, spreading your RRIF income over a number of years to minimize income taxes. An RRSP must be converted to a retirement income option, such as a RRIF, no later than December 31 of the year in which you turn 71. A RRIF has a minimum annual withdrawal amount required each year based on the value of your RRIF and your age at the beginning of each year. Withdrawals made from your RRIF are considered taxable income in the year they are withdrawn and will be added to your income for tax purposes. The investment amount that remains in your RRIF continues to grow tax-deferred until withdrawn.
Term deposits or variable deposits can be held in a Concentra Financial RRIF. You can make lump sum contributions or pre-authorized regular contributions. Contact us today to discuss your investment needs.
Tax Free Savings Accounts (TFSAs)
A TFSA is a savings vehicle which provides tax saving benefits for Canadian residents age 18 and older. Investment income in a TFSA is not taxed even when the investment is withdrawn. Contributions to a TFSA are not deductible for income tax purposes. You can earn interest tax free and still use the funds for whatever you want. You can take a vacation, buy a new car or do a home renovation.
The annual contribution limit from January 1, 2009 to December 31, 2012 was $5,000 per year. The annual contribution limit from January 1, 2013 to December 31, 2014 was $5,500 per year. The annual contribution limit for 2015 was increased to $10,000. The 2016 annual contribution limit decreased to $5,500. The 2017 annual contribution limit remained at $5,500 per year. Unused TFSA contribution room is carried forward and accumulates. The allowed contribution maximum as of 2017 for a Canadian resident aged 18 and older as of 2009 would be as shown below:
If funds are withdrawn from a TFSA, the contribution room is increased by the withdrawn amount in the tax year after the withdrawal. This means that you will not lose your contribution room by withdrawing funds from your TFSA.
Term deposits can be held in a Concentra Financial TFSA and must be invested through lump sum contributions. Contact us today to discuss your investment needs.
Registered Education Savings Plans (RESPs)
You can open an RESP for your child or grandchild to help ensure they have the funds to go to college or university in the future. An RESP is a special savings plan which can be set up as an individual plan or a family plan. Each child must have a Social Insurance Number (SIN) to become a beneficiary of an RESP. The Canada Education Savings Grant (CESG) provides grant money based on the contributions to the RESP. The investment income is tax-sheltered until withdrawn for education purposes for the student. The withdrawn investment income is taxed in the student’s hands which is typically at a lower tax rate.
Overview of RESPs and Grants (Provided by CRA)
Term deposits or variable deposits can be held in a Concentra Financial RESP. You can make lump sum contributions or pre-authorized regular contributions. Contact us today to discuss your investment needs.
Do I need to have a bank account at the Dundalk Credit Union to have a term deposit?
You do not need to have a bank account but you do have to open a share membership.
Under any circumstances will the credit union redeem my term deposit prior to the maturity date?
If you are suffering from financial hardship, the credit union will provide you with credit at a reduced rate of interest up to the value of your credit union term deposit, until the non-redeemable term deposit matures.
Upon death, a term deposit registered only in the name of the deceased will be released immediately upon receipt of appropriate documentation regardless of the maturity date.
Dundalk Credit Union refers RRSPs, RRIFs, RESPs and TFSAs to Concentra Financial. What does this mean?
The funds you are investing are held with Concentra Financial, not the Dundalk Credit Union, but you can still complete the transaction and get information about your account locally at the credit union office.