Registered Retirement Savings Plan or Registered Retirement Income Fund
Earn a return while investing in ministry
Planning and saving for the future is essential. With a CCMBC Legacy Fund Registered Retirement Savings Plan (RRSP), you can start saving for your retirement while deferring income tax and investing in the growth of God’s Kingdom.
- RRSP contribution limits are set out by Canada Revenue Agency (CRA) in your last year’s Notice of Assessment. This amount may be contributed into your own RRSP, into a Spousal RRSP or into a Registered Pension Plan.
- Contributions made within the first 60 days of the year may be used as income tax deductions for the previous year.
- No administration fees.
- While RRSP withdraws and transfers can be made at any time, you generally have to pay tax when you receive payments from the plan.
- Available to Canadian residents under age 71 who received earned income.
- For those 71 years of age and older, an Annuity, TFSA and RRIF are all viable options that lower your taxes, grow your earnings tax free, provide you with a steady income and help grow God’s Kingdom.
- The plan is administered by a government approved carrier*, and by the CCMBC Investments office who:
- Register your RRSP;
- Record your contribution;
- Maintain the account and records of the plan;
- Provide you with a semi-annual statement showing all transactions and your position;
- Issue annual receipts for tax purposes.
Transfer your registered savings or pension plan contributions into a Registered Retirement Income Fund to receive a steady flow of income during your retirement years.
A Registered Retirement Income Fund (RRIF) is an arrangement between you and CCMBC Investments, registered with the Canada Revenue Agency (CRA), whereby you transfer property to the Fund and the Fund makes regular retirement income payments to you.
Examples of property eligible for transfer into CCMBC Investments include: a Registered Retirement Savings Plan (RRSP), a Pooled Registered Pension Plan (PRPP), a Registered Pension Plan (RPP), a Spousal Pension Plan (SPP), or another RRIF.
- No administration fees
- Competitive interest rates
- A minimum annual amount must be paid to you starting in the year following the year the RRIF is set up.
- Interest, dividends earned in the RRIF are tax-free.
- Amounts paid out of the RRIF are taxable on receipt.
- You can have more than one RRIF.
- RRIF payments are eligible for $2,000 pension tax credit after age 65
This table outlines the minimum withdrawals on retirement income funds established after 1992, as set out by the Canada Revenue Agency (in 2015). Before age 71, the minimum percentage payout is worked out in the following way: 1 ÷ (90 – your current age).
At age 65, the minimum withdrawal is: 1÷(90-65)=4%. With a $100,000 RRIF, that amounts to $4,000.
Once you reach age 69, the following schedule applies:
|Age||2015 and later|
*Canadian Conference of Mennonite Brethren Churches (CCMBC) is an approved agent of Canadian Western Trust (CWT). CWT acts as trustee for TFSA, RRSP and RRIF plans pursuant to the Income Tax Act of Canada. For more information, visit www.cwt.ca.