Contribution Room – Defined Benefit vs RRSP

Published by John Sanchez on Oct 25, 2018

Registered Retirement Savings Plans (“RRSPs”) are investment accounts that are well-known to most Canadians. Amongst other benefits, an RRSP provides a personal tax deduction when an eligible investment is contributed into the plan, and investments can... Continue reading
Qualified Investments and PPPs

Published by John Sanchez on Oct 25, 2018

RRSP investors are limited by the “Qualified Investment” rules. These rules restrict the types of investments that one can hold within their RRSP. With some exceptions, asset classes such as Infrastructure, Private Debt Funds, Shares of Private Companies... Continue reading
Professional Corporations and Taxes

Published by John Sanchez on Oct 25, 2018

Many Professionals, (Doctors, Dentists, Lawyers, Accountants, etc.) have taken advantage of the ability to earn their income through a professional corporation. While there are several benefits, taxation is typically the main factor. In Canada, a corporation... Continue reading
The Additional Voluntary Contribution Sub-account

Published by John Sanchez on Oct 25, 2018

One of my favourite components of the Personal Pension Plan (“PPP”) is the Additional Voluntary Contribution sub-account (“AVC”). One key opportunity is the ability to transfer existing RRSP assets into the AVC on a tax-deferred basis. Why would a business... Continue reading
Defined Benefit Plans and Past Service Buyback

Published by John Sanchez on Oct 25, 2018

A business owner with a Defined Benefit (“DB”) plan has several advantages over one with a traditional RRSP. A powerful tax planning tool that is only available through DB plans is known as “Past Service Buyback”. This is loosely defined as follows: “The... Continue reading