Stewardship Ministries offers a no fee Registered Retirement Savings Plan with a minimum first deposit of $3,000.
Who is eligible?
Any Canadian resident 71 years of age or under who has earned income and attends a Canadian MB church is eligible. Earned income includes net rental income from real estate, but does not include interest or dividend income.
How much can I contribute to the RRSP and deduct from taxable income?
The amount of the RRSP Contribution Limit as set by Revenue Canada in your last year’s Notice of Assessment dictates this amount, which may be contributed into your own RRSP, a Spousal Plan, or a pension plan.
What about administration fees?
The Canadian conference covers all administration costs.
What is a Spousal Plan?
A Spousal Plan is an RRSP registered in your spouse’s name into which you make a contribution. Upon retirement, your spouse will pay tax on the amounts withdrawn. This is one means of shifting taxable retirement income from the high-income to the low-income spouse.
How does the Canadian Conference RRSP plan work?
The plan is administered by a government-approved trust company and by the Canadian conference office, which will:
- register your RRSP
- record your contributions
- maintain the accounts and records of the plan
- provide you with a semi-annual statement showing all transactions and your current position
- issue annual receipts for tax purposes
How will the money be invested?
Funds are invested in:
- mortgages and properties owned by Canadian MB churches and church institutions
- bank- or government-related securities or deposit accounts to provide payout monies
What income will my RRSP earn?
You will earn a competitive fixed rate of interest, adjusted January 1 and July 1 each year. The rate is linked to the rate paid by the borrowing churches and institutions.
Earned income is compounded and reinvested in your account semi-annually.
The current rate is 3.10%, effective until December 31, 2010.
Why buy a Canadian conference RRSP?
- You can invest in ministry by providing capital mortgage funds for MB churches and institutions while saving for retirement.
- The plan earns interest at competitive rates.
- You can withdraw monies at any time without penalty, unless monies originate from a locked-in pension plan.
- An RRSP enables you to defer income tax on your contribution and on plan earnings in order to increase your ability to accumulate retirement income.
- The plan is tranferrable to other carriers at any time without charge.
How can funds be used at retirement?
Under the Income Tax Act, anytime before the end of the year in which you reach age 71, you have four choices:
- Buy a Registered Retirement Income Fund (RRIF). This allows you to control your capital while providing you with an annual income tailored to your needs. It may continue for life.
- Withdraw the funds and pay income tax on them.
- Buy a life annuity with or without a minimum guaranteed payment period on a single life or the joint lives of husband and wife.
- Buy an annuity for a fixed term of a specific number of years.
Note: RRSPs not converted to RRIFs or annuities will become taxable income in the following year.
How is the investment protected?
Loan investment risks are reduced by:
- registered mortgage security on land
- lending only to borrowers affiliated with the Canadian Conference of MB Churches
- the national nature of the program, which reduces the impact of regional conditions
- loan screening by a special committee of the Canadian Board of Management
Begin sheltering your income from tax early in the year for maximum benefit.
Contributions made within the first 60 days of the year may be used as income-tax deductions for the previous year.
The Canadian conference will accept RRSPs currently with other carriers at any time.
Related Forms
The Canadian Conference of Mennonite Brethren Churches is a charitable organization, not a financial institution.
Conference RRSPs and RRIFs are not government-guaranteed or insured by the Canadian Deposit Insurance Corporation.
This web page is for general information only and is not intended to provide legal or tax advice.
Wise Retirement
Defer income tax while benefitting MB ministries.
Plans earn competitive fixed interest rates adjusted twice yearly and feature no administration fees. You may withdraw funds at any time without penalty, or transfer the plan to another carrier.
