Registered Retirement Savings Plans are government approved tax deferral programs with many advantages over standard savings plans. Funds deposited in an R.R.S.P. are not taxed until withdrawn from the plan. If you deposit within the first 60 days of the year, you can choose between claiming your deductions for the previous year or for the current year.

To find out how much you can invest in your R.R.S.P. check the bottom of your Tax Notice.

Just think of the load this will take off your present taxable income. For those with a heavy tax load, the tax refund could end up covering a large part of next year's R.R.S.P. investment.

Spousal Deposits
You might consider contributing to an R.R.S.P. in which your spouse is beneficiary. Spousal R.R.S.P.s are an excellent income-splitting device that can serve to lighten your tax load in the future.

R.R.S.P.s Options Available
Thorold Credit Union has two Registered Retirement Savings Plans available. Members may choose one or both plans.

1. R.R.S.P. Term Deposits:
Members may choose to have an R.R.S.P. Term Certificate plan. This option yields a higher interest rate than the "savings account" option. The Term Certificate option cannot be redeemed early unless it is to settle an estate. The minimum deposit for an R.R.S.P.s Term Deposit is $500.

2. R.R.S.P. Savings Account:
This option allows you to make deposits at any time. You can automatically transfered Weekly, Bi-weekly or Monthly. Interest is calculated on the daily closing balance and compounded semi-annually.
You can Cash-in this R.R.S.P. at any time simply by giving us the required notice. Just remember... you'll have to count that money as "income" in the year it is received! There is, however, nothing to prevent you from starting another R.R.S.P

TAX-FREE SAVINGS ACCOUNT (TFSA)

A fresh approach to your savings.

The Tax-Free Savings Account (TFSA) is available beginning in 2009 to Canadian Residents age 18 or older. TFSA allows taxpayers to set money aside in eligible investment vehicles and watch those savings grow tax-free throughout their lifetime.
There are no restrictions on the way TFSA funds (contributions and earnings) may be used (ie purchase a car, renovate a home,start a small business, take a family vacation, or just save for a "rainy day"). All income levels and all walks of life can benefit from a TFSA. But only a careful review of each person's financial situation will determine how to optimize use of RRSPs, RESPs,RRIFs and TFSAs.

TFSA Eligibility
The individual owning the TFSA is the "Holder". Any individual person (not trusts or corporations) who meets all of the following three requirements is eligible to open a TFSA:

• Resident in Canada, and
• 18 years of age or older, and
• Holds a valid Social Insurance Number (SIN)

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