What is an RRSP?

A Registered Retirement Savings Plan, or RRSP, is a government approved plan through which you can save money for your retirement years. Your contributions, within limits, are tax deductible, and the income earned is tax sheltered.

The plan is designed so that you are investing money when you can most afford it, during your peak earning years, thereby enabling you to build up a comfortable retirement fund. Plus, not only do you invest some money that would otherwise be paid in taxes, but the earnings of your plan are not taxed until you withdraw them. Since 100% of these earnings can be reinvested and compounded, the growth of your RRSP increases rapidly over the years.

Who can contribute to an RRSP and when?

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

Also, you can make part or all of your contribution to a plan in your spouse's or common-law partner's name. You, as the contributor, are still entitled to the tax deduction. Contributions can be made until the end of the year in which the planholder's 71st birthday occurs.

Contributions can be made to an RRSP any time during the calendar year as well as the first 60 days of the following year to be eligible as a deduction for the current years taxable income.

What are the options available?

GVC Credit Union has many RRSP options available such as:

  • variable rate plan with no minimum deposit and redeemable on demand
  • fixed rate, non-redeemable terms from 1-5 years with a minimum deposit of $500
  • automatic monthly contribution to variable plan can be arranged
  • no setup or administration fees*
*except when the RRSP is transferred to another financial institution.

If you are interested in contributing to an RRSP, but are low on funds, an RRSP Loan may be the answer.

Visit or contact your branch today to find out how GVC Credit Union can help you with a retirement plan that fits your needs.