Planning for your retirement - Servus Credit Union

Some Tax ConsiderationsRRSPs, RRIFs, LIRAs, Locked-in RRSPs, RLSPs, LIFs,RLIFs, LRIFs, SK RRIFs, MB RRIFs and RRSP annuitiesall act as a form of tax shelter, in that you only pay tax onamounts withdrawn from the plans – usually at a lower rateafter you retire.There are additional ways you can reduce income tax– eitherduring your prime earning years (which can add to yoursavings for retirement), or in your actual retirement years.Some opportunities exist for income splitting betweenspouses – that is, transferring future taxable income from ahigh-income spouse to a lower-income spouse. This meansyour total taxes will be lower and full advantage can be takenof available personal tax credits. Other possibilities includecontributing to a spousal RRSP and paying your spouse asalary if you own a business.The largest single investment for most people is a home. Itis also a tax shelter because any gain realized when it is soldis tax-free.Remember that the only definitive authority on the subject oftaxes is the Income Tax Act and its regulations. For completeinformation, contact your District Taxation Office.Reference BookletsRRSP and Other Registered Plans for Retirement, guidepublished by the Canada Revenue Agency (CRA) andavailable through District Taxation Offices.Understanding All The Basics and Knowing Your RetirementIncome Options, booklets published by the credit unionsystem and available through many credit unions.Tax-Free Savings Account: A Fresh Approach to YourSavings, leaflet published by the credit union systemand available through many credit unions.PLANNING FOR YOUR RETIREMENT 21