Registered Plans

Registered Retirement Income Fund (RRIF)

A Registered Retirement Income Fund, or RRIF, is an investment option that allows you to transfer the funds from your Registered Retirement Savings Plan (RRSP) for the purpose of receiving a regular income during your retirement years. Contributions cannot be made directly to a RRIF; they must be transferred from a RRSP or other tax-sheltered investment.

 

When can I purchase a RRIF?

You can purchase a RRIF at any time before the end of the calendar year in which you turn 69. There is no tax consequence for transferring your RRSP funds to the RRIF and you aren’t required to take any payment in the year of purchase.

In subsequent years, there is a mandatory minimum payment, which changes annually based on your age (or your spouse's age if you have elected) and the total value of the RRIF at the beginning of the year. Payments received are taxable. However, since the income is spread over your retirement years, so is the tax liability.

Withdrawals over the mandatory minimum payment are permitted. But it should be noted that this will increase your taxable income and incur withholding tax at the same rates as with RRSPs. Withholding tax will also be incurred for any payments taken during the same calendar year that the RRIF is opened.

 

What are the options available?

 We have many RRIF 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
• GVC Escalator Term Deposits are RRIF eligible
• No setup or administration fees*

*Except when the RRSP is transferred to another financial institution.

 

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


Retirement Options Brochure   |   RRIF Rates

 

 

Registered Disability Savings Plan (RDSP)

Make the most of your savings with an RDSP

A Registered Disability Savings Plan (RDSP) provides long-term tax-sheltered savings and can trigger qualifying contributions of up to $90,000 in government grants and bonds over its lifetime.

Funds held in an RDSP account can be invested in products like term deposits or mutual funds. We’re here to help you navigate opening an RDSP for yourself or your child and to guide you to investments that will help with saving for the future.

How it works

Eligible Canadians who qualify for the federal disability tax credit can receive up to $4,500 annually in grants and bonds through:

• The Canada Disability Savings Grant: a matching grant of up to 300%
• The Canada Disability Savings Bond: receive up to $1,000 a year
• A $150 contribution from Endowment $150 through Vancouver Foundation

There is no annual contribution limit, but the lifetime limit is $200,000. Grant and bond money going back to 2008 may be claimed by eligible recipients. Contributions can be made by anyone with the written permission of the plan holder. There is no impact on other government tax and disability benefits for BC beneficiaries.

More resources

See what’s new on the Canada Revenue Agency website.

*Terms and conditions of government programs are subject to change at any time by the federal or applicable provincial government.

 

Tax-Free Savings Account (TFSA)

A Tax-Free Savings Account (TFSA) is a registered savings account that allows taxpayers to earn investment income tax-free inside the account.

Each year you can contribute an amount up to your contribution room for the year.

Year	Contribution
2023	$6,500
2022	$6,500
2021	$6,500
2020	$6,500
2019	$6,500
2018	$5,500
2017	$5,500
2016	$5,500
2015	$10,000
2014	$5,500
2013	$5,500
2012	$5,000
2011	$5,000
2010	$5,000
2009	$5,000
Total Contribution Amount*	$88,000*

 

* All members aged 18 and over are eligible for a TFSA, however the total contribution room listed only applies if you were 18 or older in 2009. You have access to the contribution limit of the year you turned 18, plus subsequent years. If you're unsure of how much contribution room you have, please contact the Canada Revenue Agency (CRA) or visit the CRA site on TFSAs.

• Any unused contribution room from previous years is carried forward.
• Any interest earned on the savings, even from investments, will not be taxed.
• You can withdraw your money at any time, tax-free, for any reason, and any money you withdraw can be recontributed the following year.

 

Important Information

Contributions

• Contributions to a TFSA will not be deductible for income tax purposes, but investment income, including capital gains, earned in a TFSA will not be taxed, even when withdrawn.
• Unused TFSA contribution room can be carried forward to future years. For example, if you contribute $4,500 to your TFSA in 2012, your 2013 contribution room will be $6,500: $1,000 of unused room for 2012 plus the full $5,500 contribution room for 2013.
• Over-contributions - above your annual contribution limit - are charged a penalty by the Canada Revenue Agency (CRA).

 

Withdrawals

• You can withdraw funds from the TFSA at any time for any purpose, but you cannot recontribute the withdrawn amount until the following year.
• The amount withdrawn can be put back in the TFSA the following year without reducing your contribution room.
• Neither income earned in a TFSA nor withdrawals will affect your eligibility for federal income-tested benefits and credits.

Spousal contributions

• Contributions to a spouse's TFSA is allowed.
• TFSA assets can be transferred to a spouse upon death without affecting the survivor's existing contribution room.
• Interest paid on a loan used to make a TFSA contribution is not tax deductible.

Contributing to your Tax Free Savings Account

You can contribute to a TFSA at your branch, over the phone, or in Online Banking. Once your TFSA is set up, you can transfer money to your TFSA whenever you need.

TFSA Brochure  |  Comparing RRSP & TFSA Brochure  |  TFSA Rates

 

 

 

 

Coming Soon! First Home Savings Account (FHSA)

A new way to save for your first home

The Tax-Free First Home Savings Account (FHSA) helps Canadians afford their first home by combining the benefits of the Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). Contributions of up to $8,000 a year are tax-deductible. Meanwhile withdrawals towards your first home purchase would be non-taxable like a TFSA.

Why should you invest in an FHSA?

• Save up to $40,000 towards your first home. That would cover the down-payment of a high-ratio mortgage on most homes.
• Get tax benefits now and later. You won't pay taxes on your investment earnings and it can help lower your annual tax bill.
• Your contribution room carries forward. So, you won't lose out as your income grows and you can contribute for up to 15 years tax-free.
• You can combine it with your partner's FHSA. If you both open FHSA accounts, you can both withdraw funds and increase your purchasing power.

Who can apply for an FHSA?

To be eligible, you must meet these requirements:

• Be at least 18 years old
• Be less than 71 years old on December 31 of the year
• Be a resident of Canada
• Have a Social Insurance Number (SIN)
• You and/or your spouse must have not owned (or jointly owned) a home where you lived in this year or at any time in the preceding 4 calendar years

If you’re interested, please contact one of our branches today.

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Can I have more than one FHSA open at a time?

Yes. However, to avoid unintended tax consequences, the total amount you can contribute to your FHSAs and transfer from your RRSPs to your FHSAs in a calendar year cannot be more than your FHSA participation room for that year.