President's Choice Financial|accounts and products|mutual funds|

registered plans protect your investment income

Registered plans allow your investment income to be tax-free or tax-deferred, towards your short or long term goals.

To take advantage of their benefits, mutual funds can be held inside any of these registered plans*:

save for your retirement with a Registered Retirement Savings Plan (RRSP)

An RRSP is an registered plan that grows on a tax-deferred basis. It can hold numerous investments, including mutual funds. With an RRSP, the money that you contribute is deductible from your income when you file your tax return, which means that you could get some of that money back as a tax refund. Earnings on your investment are also exempt from taxes as long as you keep them in your RRSP. Withdrawals from your RRSP are included in your regular income and are subject to tax at your marginal tax rate.

Make your pension funds work for you with a Locked in Retirement Account (LIRA)

Locked In Retirement Accounts (LIRA) are RRSPs, only that the funds are locked in. They originate from Registered Pension Plans where funds are set aside by an employer, an employee, or both to provide a pension when the employee retires.

When an employee has terminated employment and was a member of a registered pension plan, any funds due to the employee under that plan may be transferred to a LIRA. Withdrawals may not be made from a LIRA but for extenuating circumstances. By the end of the year in which the taxpayer turns 71, a LIRA must be transferred into a RRIF or withdrawn.

earn tax-free investment income with a Tax-Free Savings Account (TFSA)

A TFSA is a registered savings plan that allows you to earn interest or other investment income tax-free inside the plan. Canadians 18 years and older have $5,000 of annual TFSA contribution room, indexed to inflation. These contributions are not tax deductible, and withdrawals of contributions and earnings from your TFSA are not taxable.

save for your child’s education with a Registered Education Savings Plan (RESP)

Concerned about how you’ll pay the cost of post-secondary education for your children? An RESP can help. An RESP is a registered plan that lets you contribute a lifetime maximum of up to $50,000 per child. Unlike an RRSP, your contributions to an RESP are not tax-deductible, but the investment income earned is tax-sheltered until withdrawn. When income is withdrawn to pay for the child’s education, it is taxed at the student’s tax rate, which may be lower than that of the contributor.

Plus, your RESP contributions can be supplemented by the Canada Education Savings Grant (CESG). Under the CESG, the federal government “tops up” the first $2,500 contributed to an RESP every year by 20%. That can add up to an extra $500 per year, up to a maximum lifetime grant of $7,200 per child. You may even be eligible for additional government grants, depending on your province of residence.

enjoy your retirement with a Registered Retirement Income Fund (RRIF)

The government requires that your RRSP investments be converted to a retirement income option by the end of the year that you turn 71. Most Canadians choose a RRIF, which allows you to control your choice of investments and gives you the flexibility to choose the timing of your income payments. Your RRIF income payments are considered to be a part of your ordinary income, so they are taxed as such by the Canada Revenue Agency in the year that you receive them. Minimum amounts need to be withdrawn yearly from a RRIF, but the remaining investments can remain in the plan, where they can continue to grow on a tax-deferred basis.

important information about CIBC Securities Inc. and CIBC Mutual Funds

helpful tools and information

CIBC Mutual Fund Fees
CIBC Fund Facts
CIBC Mutual Funds and CIBC Family of Managed Portfolios Simplified Prospectus
- Simplified Prospectus - July 28, 2011
- Amendment No. 1 to the Simplified Prospectus – December 21, 2011
CIBC Mutual Funds and CIBC Family of Managed Portfolios Annual Information Form (AIF)
- Annual Information Form - July 28, 2011
- Amendment No. 1 to the Annual Information Form – December 21, 2011
CIBC Mutual Funds and CIBC Family of Managed Portfolios Financial Statements
- Annual 2011
CIBC Mutual Funds and CIBC Family of Managed Portfolios Management Reports of Fund Performance - Annual 2011
- Annual 2011
Quarterly Portfolio Disclosures
- Quarterly Portfolio Disclosures

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* Premium Class units of CIBC Index Funds are not eligible for RESP accounts offered by CIBC Securities Inc