I'm an incorporated physician and want to understand my options.
A corporation is not eligible to open a TFSA, but your MD advisor can provide the advice you need to personally take advantage of an MD TFSA, in a tax-efficient way. Incorporated physicians can benefit from advice like:
Proceed with caution
If you're in the top marginal tax bracket, you may take a tax hit if you draw funds from your corporation to personally invest in a TFSA. Your MD advisor will help you examine your specific situation to identify what will work best for you.
Take a team approach
A TFSA has no attribution rules, meaning a spouse can fund a TFSA. Your MD advisor can provide advice on how to use dividend payments or other income to have your spouse fund both of your MD TFSAs.
Work the TFSA account to your advantage
Your MD advisor can explain the cases where you can draw funds without tax implications from your corporation (a parental leave is an example). They can then help you invest these funds in an MD TFSA in a way that complements your corporate investments.
Contact your MD advisor today to book an appointment or indicate your interest in having the application sent to you when available.
