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New CPRSP benefits.
New decisions to make.

Are you a physician in B.C. who qualifies for the CPRSP benefit? With no more matching and new choices, you’ll need the right advice to optimize your CPRSP.

Have you heard about the major changes affecting the Contributory Professional Retirement Savings Plan (CPRSP) program this year?

Here’s what’s new and how we can help steer you in the right direction.

NO MATCHING CONTRIBUTION REQUIRED

This is the biggest change to the CPRSP program in its history. You no longer need to make a matching contribution to claim your CPRSP benefit. The only condition? You must first deposit your own funds to a registered account — which means deciding which one to use.

YOU CAN NOW USE A TFSA

New this year is the option to invest your CPRSP benefit in a tax-free savings account (TFSA), as well as your registered retirement savings plan (RRSP) or individual pension plan (IPP). Which one is better for you or can you use both? How does it affect your taxes?

WITHDRAW CPRSP FUNDS FOR HOME BUYER’S PLAN AND LIFELONG LEARNING PLAN

You can now withdraw your CPRSP money with no penalties from your RRSP for the Home Buyer’s Plan, which can help you qualify for a mortgage more readily, or withdraw for the Lifelong Learning Plan to help fund your or your spouse’s education.

Ready, set, go

  1. Have you received your CPRSP benefit notification from Doctors of BC? Doctors of BC will send you an email with the details of your CPRSP benefit entitlement. Didn’t get an email? Contact Doctors of BC for more information. If you’re already a member, log into the Doctors of BC website.
  2. Find your CPRSP benefit amount and your RRSP limit in your 2019 notice of assessment. Once you know your benefit amount and RRSP limit, your MD Advisor* can help you decide on the best strategy for your situation. It could be an RRSP, a spousal RRSP, a TFSA, an IPP or a combination of these.
  3. Book a virtual meeting with an MD Advisor by completing the contact form and we’ll get in touch with you. If you’re an MD client, you have the option to sign into your My MD account to book a meeting with your MD Advisor directly.
  4. Make your full deposit into the account of your choice and submit proof of your contribution along with your CPRSP application on the Doctors of BC website.

 

 

 

* MD Advisor refers to an MD Management Limited Financial Consultant or Investment Advisor (in Quebec).

The information contained in this document is not intended to offer foreign or domestic taxation, legal, accounting or similar professional advice, nor is it intended to replace the advice of independent tax, accounting or legal professionals. Incorporation guidance is limited to asset allocation and integrating corporate entities into financial plans and wealth strategies. Any tax-related information is applicable to Canadian residents only and is in accordance with current Canadian tax law including judicial and administrative interpretation. The information and strategies presented here may not be suitable for U.S. persons (citizens, residents or green card holders) or non-residents of Canada, or for situations involving such individuals. Employees of the MD Group of Companies are not authorized to make any determination of a client’s U.S. status or tax filing obligations, whether foreign or domestic. The MD ExO® service provides financial products and guidance to clients, delivered through the MD Group of Companies (MD Financial Management Inc., MD Management Limited, MD Private Trust Company, MD Life Insurance Company and MD Insurance Agency Limited). For a detailed list of these companies, visit md.ca. MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies.