- Overview
- Annual Administration
- Setup Process
Overview
The Retirement Compensation Arrangement (RCA) is the super-sized pension plan.
It allows for larger contributions making it the highest level of retirement program in Canada. It provides an excellent way to increase retirement assets to the maximum level allowable.
The RCA is for the high income earner who wishes to sustain their standard of living into retirement. It is ideal for business owners, executives, and incorporated professionals and professional athletes.
The strategy also appeals to the business owner who can see additional benefits in its flexibility and can adapt it to meet his/her business and tax strategies.
Advantages of the RCA
- Flexibility
- Non-locked in funds
- Creditor proof
- Ability to leverage
- Exempt from payroll taxes
- Taxation only occurs at the time of withdrawal
- Taxation depends on place of residency at time of withdrawal
- Ability to defer money to a time and place of one’s own choosing
To learn more about this product, contact GBL or register as an advisor.
RCA Annual Administration
Making contributions to an RCA is not mandatory however; once you decide to contribute there are guidelines as to the timing and reporting of those contributions to CRA. Late or misfiled documents will incur penalties from CRA. These guidelines are simple and accessible in the CRA RCA Guide.
RCA annual filing requirements can be completed by the sponsoring company or, you may elect to have GBL Inc. complete the annual filing for you.
- RCA Administration Encompasses
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- Contributions made to the RCA
- Annual Administrative Reporting to CRA
- Distribution, payments made from the Plan (Retirement)
- Making A Contribution
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When making contributions to the RCA you will receive a "Form T-901B, Statement of Account” which includes a blank remittance voucher. Use the remittance voucher to make subsequent payments, either directly to the Winnipeg Tax Centre, or through a Canadian financial institution.
If you do not receive Form T901B in time for your next payment, do not delay making the remittance. Send the payment directly to the Winnipeg Tax Centre with a note indicating the following:
- Your name and address, custodian's full name and complete address
- Full name of the RCA trust
- Month and year for which the contribution was made
- RC Employer account number
- Annual Administration Forms
Visit our resources page for additional information, downloads and links.
If you have any questions related to this process, contact us
RCA Setup Process - 5 Simple Steps
Step 1 – Request a Personalized Quote
Complete our online questionnaire or download a PDF version. Your GBL representative will prepare a custom RCA quote at no cost within 1-2 business days.
Step 2 – Understanding the Quotation
Upon receipt of your RCA quote, please contact your GBL representative who is available for consultation in-person or via conference call to answer any questions that may arise.
Step 3 – Setting up the RCA
Once you decide to set up an RCA, you must complete our authorization form and return fax or courier to your GBL representative. Please allow 5-10 business days to receive your RCA package.
Step 4 – Document Signing
Your GBL representative is available to assist in the signing process and answer any last minute questions. Upon final execution of the RCA agreements, GBL will register the plan with Canada Revenue Agency (CRA).
Step 5 – Fund the Plan
Your RCA is self directed therefore, working with your planner you can identify your objectives and see that your assets are invested according your preferences and CRA funding regulations.
