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ABOUT RRSP |
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What is a RRSP ?
RRSP (Registered
Retirement
Savings Plan) is
a saving for
your retirement.
It is an
excellent way to
build your
retirement fund
for the future
and save on
taxes today.
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What are the
main benefits of
a RRSP ?
You can save
money and defer
the current
year's income
taxes. Your tax
benefit will
depend on how
much you earn,
how much income
tax you pay and
how much you put
into your plan
each year. The
longer your
money is kept in
the plan the
better the
results. The
minimum tax
saving can be
$4,000 x 22% =
$880 for the
contribution
year only.
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What are the
contribution
limits ?
Your current
contribution can
be 18% of your
last year's
earned income to
a maximum of
$20,000 for the
2008.
If you are a
member of a
company pension
plan (RRSP) but
do not
contribute then
your
contribution to
RRSP can be up
to $20,000, if
you do
contribute to
your pension
plan then your
maximum
contribution
would be $20,000
less your
contribution to
the company
pension plan in
the year. To
determine your
maximum
contribution
amount, please
refer to the
Assessment
Notice sent by
Canada Revenue
Agency (CRA) for
your last year's
income tax
return.
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Do I have to
contribute every
year ?
Your RRSP
contribution
each year is
completely
voluntary, and
may vary from
one year to the
next. However,
we recommend
that you
contribute a
minimum of
$2,000 each year
regularly based
on your earned
income in the
year.
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Where are the
RRSP funds
invested ?
Your RRSP/RIF
funds are
invested by
Concentra
Financial in a
Public
Corporation that
is being set-up
to operate on
interest-free
basis and in
Private Canadian
Corporations
(Ansar Financial
Companies) that
also operate on
interest free
basis. These
Corporations
invest in
community
development
projects such as
Car Ownership
plans, a Muslim
Long Term Health
Care project,
Land Development
and Construction
projects in
Canada.
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Security of
investments and
the historical
returns
Ansar Financial
Companies number
one priority is
security of the
RRSP funds. Each
project is
analyzed
thoroughly
before
implementation.
Return on the
investments for
the last fifteen
years has ranged
between 5% and
7%.
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Can I transfer
my RRSP funds
from another
institute ?
You can transfer
an existing RRSP
from other
financial
institutions. To
arrange a
transfer, you
must become an
Al-Amin Group
member as well
as open an
account with
Concentra
Financial and
complete a
Direct
Transfer-In form
requesting to
transfer your
funds directly
to Concentra
Financial.
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Can I can
contribute to
some else's plan
?
Yes, to your
spousal plan. A
portion or all
of your
allowable
contribution may
be allocated to
a spousal RRSP,
regardless of
whether your
spouse has
earned income,
as long as the
combined amount
you contribute
to your own and
the spouse's
RRSP does not
exceed your
annual RRSP
limit.
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What is the
deadline for
making a RRSP
contribution ?
The deadline for
the RRSP
contributions,
which may be
claimed as an
income tax
deduction for
the current
filling season
is March 1st.
However, we
encourage you to
contribute
early,
preferably by
third week of
February to
avoid the last
minute rush.
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Annual Fee
The annual
Trustee Fee
which you pay to
Concentra
Financial
through Al-Amin
Association
group RRSP plan
is $125
plus
GST($131.25).
Concentra
Financial will
provide you with
the following
services:
- Services of your account administrator
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Issuing tax receipts for contributions made to your plan
- Semi-annual statements provided to you on the plan's assets and transactions
- Safekeeping of investment share certificates held in your plan
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Withdrawal of
funds
You can withdraw
your RRSP funds
by completing
the Concentra
Financial as
well as Al-Amin
RRSP withdrawal
form. It will
take 4 to 6
weeks (longer
for larger
amounts) to
liquidate the
investments and
the proceeds
will be
forwarded to you
by Concentra
Financial via a
cheque after
deducting any
withholding
taxes and/or fee
arrears.
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Helpful notes
- All Concentra Financial forms are available on our web site and can be easily downloaded
- Always pay your Trustee Fee separate from your RRSP contribution each year
- Ensure to keep Al-Amin updated with your current address and contact information
- As per tax laws, your RRSP redemption withholding taxes are 10% for a $5,000 or less withdrawal; 20% for a $5,001 to $15,000 withdrawal and 30% for a $15,001or more withdrawal
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Before you turn 71all RRSP investments must be converted to RIF (Retirement Income Fund), also available through Concentra Financial.
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