The end of 2023 is approaching much faster than we think. Many Business Owners and Incorporated Professionals have much clearer ideas as to what their corporate profits will be and are in the need of meaningful deductions to manage both corporate and personal taxes.
With so many tax strategies being muted or closed due to changes in tax policy, coupled with the passive income rules, there are fewer options to pivot to in light of unexpected spikes in active business income. Individual Pension Plans (IPPs) and Retirement Compensation Arrangements (RCAs) are 2 tools that can be instrumental in prudent tax planning. For 2023 we are down to the last few weeks in order to receive applications and lock in those deductions for corporate year ends that are in the last quarter of the year. Completed IPP and RCA applications are required on or before December 11, 2023.
IPPs have become incredibly flexible with changes to provincial regulations. In Ontario, we see IPPs now being exempt from the Provincial funding rules and, on retirement, no longer being subject to locking-in requirements. The majority of Provinces have flexible funding rules, which provides owners with confidence that in a poor revenue year, there is no concern of having to make a minimum mandatory contribution.
For larger one-time or ongoing deductions, the RCA is the perfect tool to use.
Our sales team is at your service to run any estimates and help present the strategy to your clients and their accountant. Feel free to reach out to our team at 403.249.1820 or [email protected] with any inquires.
Founded in 1995,GBL is a leading provider of retirement, health, and cross-border solutions for business owners across Canada. With offices in Calgary and Toronto, we have served 6,000+ clients, have 3,000+ Financial/Investment Advisors in our network, actively manage 2,000+ IPPs and RCAs, and have created 1,000+ HBPs and 3,000+ FMVs. We’re known for our industry leading client service and administration, as well as our top-notch actuarial group. Contact us today at [email protected] or 403.249.1820 and follow us to learn how we can help Build Your Future. www.gblinc.ca