Make the most of your CPRSP benefit
Are you a physician in B.C. who qualifies for the CPRSP benefit? Make sure you get the right advice to optimize your CPRSP.
WHAT IS THE CPRSP BENEFIT?
The Contributory Professional Retirement Savings Plan (CPRSP) is a unique benefit program administered by Doctors of BC. It helps practising physicians in B.C. fund their retirement by reimbursing CPRSP contributions made to a variety of retirement savings vehicles, including their personal or spousal registered retirement savings plan (RRSP), tax-free savings account (TFSA), registered retirement plan (RRP), such as the Medicus Pension PlanTM, or individual pension plan (IPP).
WHO IS ELIGIBLE FOR THE CPRSP BENEFIT?
To claim the CPRSP benefit, you must be a practising physician in the province of B.C. who was paid in the previous calendar year, either on a fee-for-service basis or through a non-salaried service contract.
If you are over age 71, you can claim the CPRSP benefit if you have a TFSA or if you share a spousal RRSP with a spouse who is 71 years old or younger.
HOW DOES THE PROGRAM WORK?
You make a contribution to your retirement savings vehicle of choice (RRSP, spousal RRSP, TFSA, Medicus, or IPP) that is equal to or greater than your CPRSP entitlement. You will have to choose which one (or which combination) is best for you and carefully consider the tax implications.
Apply online for your benefit. Proof of deposit is no longer required, but you may be selected to provide proof at a later date. Doctors of BC reimburses your benefit to your bank account.
HOW DO I APPLY FOR THE CPRSP BENEFIT?
- Each fall, 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.
- You can find your RRSP limit in your previous year’s Notice of Assessment. (Note: you can claim any outstanding CPRSP benefits from the previous two years before they expire.) 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, the Medicus Pension Plan, an IPP, or even a combination of these.
- 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.
- Make your full deposit into the account of your choice and then complete your CPRSP application on the Doctors of BC website.
HOW CAN MY MD ADVISOR HELP?
An MD Advisor will help make sure that you’re on the right track when it comes to investing your CPRSP benefit. We’ll help you develop a strategy that will maximize your CPRSP contributions and align with your overall financial goals — whether it’s saving for retirement, paying down debt or funding a child’s education.
Medicus Pension PlanTM is a trademark used under licence. The Medicus Pension Plan is a registered pension plan. It is registered under the Pension Benefits Act (Ontario) and the Income Tax Act (Canada). To determine if the Medicus Pension Plan is appropriate for your retirement planning needs and retirement income objectives, please consult your MD Advisor.
* MD Advisor refers to an MD Management Limited Financial Consultant or Investment Advisor (in Quebec).
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