Tax Planning
IPP vs RRSP
IPP vs RRSP? What’s the difference? You may have heard people ask this. Below we’re giving you the answer. Individual Pension Plan is a employer sponsored defined benefit pension plan whose goal is to provide […]
retirement
Tax Planning
Understanding a RCA Pension Plan
A Retirement Compensation Arrangement (RCA) is a pension plan where a custodian holds funds contributed by an employer for the purpose of distributing it to the employee in retirement. A RCA pension plan is often […]
Tax Planning
Withdrawing from a LIRA
Withdrawing from a LIRA can be complicated if you don’t know where to begin. Locked In Retirement Accounts requires the completion of applicable forms and meeting certain requirements that vary province by province. As each […]
Retirement Planning
Old Age Security Clawback
If your net worldwide income exceeds a certain threshold, there may be an Old Age Security clawback on the payments you’ve received. For example, if your net worldwide income exceeds the threshold amount which for […]
Retirement Planning
Sharing CPP Benefits
Many spouses and common law partners can opt in sharing CPP benefits with one another in order to realize tax savings. In order to do so, you must: Be receiving the pension or be eligible […]
Tax Planning
Withdrawing from a Spousal RRSP
Withdrawing from a spousal RRSP is permitted and withholding tax rates apply. However keep in mind that tax on withdrawals from a spousal plan will be taxed in the annuitant’s name only if no contributions […]
Retirement Planning
Defined Benefit Pension Plan Formula
Defined benefit pension plan formula allows an employee to calculate how much their retirement benefit might be. Defined benefit plans are typically the preferred choice for unions and employees as they promise a guaranteed monthly […]
Retirement Planning
Qualifying Factor of 85
Plan sponsors specify a “normal” retirement age, the age where a plan member can retire with a full pension in retirement. This age is typical 65. However, for many plans, it is not 65. The […]
Tax Planning
Splitting Income with a Spousal RRSP
Spousal RRSP allow tax payers to effectively split income and save on tax. This is especially true when there is a large income disparity between spouses. Spousal Registered Retirement Savings Plan are opened in the […]