Registered Retirement Savings Program
This quick and easy introduction to RRSPs is a great first step to learning more.
Here are some answers to frequently asked questions:
Here are some frequently asked questions and the answers:
What is an RRSP Program?
A Registered Retirement Savings Program (RRSP) is a fantastic way to save for retirement. Think of an RRSP account as a lockbox for your savings, only better. Here's why:
- The contributions made by you are tax deductible, bringing down your gross income and you are taxed less.
- Your RRSP is a temporary tax shelter. You don't pay tax on your investment income (until it's withdrawn), meaning the overall value grows much faster.
- You won't be taxed on your RRSP until you make withdrawals, presumably during retirement. It will be taxed as income – most likely at a lower rate since you'll be earning less then as compared to now.
How do I set up an RRSP account?
Upon hire, you will receive RRSP enrollment papers and submit them according to the instructions provided. The contributions you will receive will be outlined in your collective agreement. Your funds are invested with Industrial Alliance Financial Group (IA).
How much money is going into my account?
The specifics around how much your employer will contribute and whether matching is required, is outlined in your collective agreement.
Can I make additional contributions above and beyond the plan?
Yes! Just fill out the CWU Additional RRSP Contributions Form and submit to your payroll department. This form can be found in documents & forms.
Can I withdraw funds from RRSPs?
As long as you work for a CWU company, the funds that the employer has contributed, along with any required funds from you, are locked-in except if the purpose is for First Time Homebuyer’s Plan or Lifelong Learning (educational purposes). You can withdraw your voluntary contributions whenever you want, although, we strongly urge you not to. Funds withdrawn from an RRSP will be charged taxes. In all provinces except Quebec, a 10% tax rate is applied for withdrawals up to $5,000, 20% for more than $5,000 to $15,000 and 30% for more than $15,000.
It’s tax time – is there anything I need to do?
You will receive a statement in the mail from Industrial Alliance every year before the end of February that needs to be reported on your income tax return. Due to the fact that your contributions were made with pre-tax dollars, you won’t receive a higher tax return as a result, however, you still need to report those amounts on your taxes because the CRA requires this information because the funds are deducted from your yearly "allowable RRSP contribution limit”. If you need to obtain additional copies of your RRSP tax statement, you can go online using your username and password and print off, or contact Industrial Alliance and request a new one be mailed to you.
I still have questions, is there someone I can talk to?
You can call CWU anytime at 1-844-293-2330 or call IA customer service at 1-800-567-5670.