What are the contribution limits, and how much can members contribute to the Common Good Plan?

General contribution limits for RRSPs and TFSAs are set by the government and can be found here. Each person can view their individual contribution limits by logging into their CRA My Account or by looking on their latest notice of assessment under “Available contribution room for [YEAR].”

It is the responsibility of a member to ensure they do not exceed their limits under the Income Tax Act. Members will be solely responsible for any taxes or fines imposed if contributions exceed the RRSP or TFSA limits. We provide education to members about their limits as part of their account.

Members can set up a monthly savings plan, and make other contributions throughout the year as they would like. Monthly savings plans are pro-rated and capped at the annual contribution limits, but if members have more contribution room, they can make additional contributions as they wish. 

Do I get a tax deduction for the contributions I make to the Common Good Plan?

Contributions to a RRSP are tax deductible.

Tax receipts will be issued for all ongoing and one-time contributions to your RRSP. You will receive two tax receipts, one for all contributions made during the first 60 days of a taxation year and one for all contributions made during the last 10 months of the taxation year. These receipts will be made available in the “My Documents” section of your online account, accessible through the drop down menu at the top right corner.

What happens to a member’s existing TFSA and RRSPs?

The government allows people to hold multiple TFSA and RRSP accounts. This means that it’s up to each member to determine what happens to any other TFSA or RRSP accounts they hold. They can choose to transfer all of their funds into their new Common Good account (done directly within the platform) or keep them where they are.

If a member wishes to consolidate their RRSP and TFSA savings in the Common Good Plan, they can initiate a transfer from their online account, and our team will take care of the rest. A direct transfer has no impact on your contribution limits or tax implications.

Do members get a tax deduction for their contributions to the Common Good Plan?

Contributions to an RRSP are tax deductible. 

We will issue tax receipts for all ongoing and one-time contributions to the RRSP. Members will receive two tax receipts, one for all contributions made during the first 60 days of a taxation year and one for all contributions made during the last 10 months of the taxation year.

Contribution receipts are available in a member’s online account in the “My Document” section.