RETIREMENT COMPENSATION ARRANGEMENT

Let Geraci Financial Group reduce your corporate tax and increase your corporate tax flow. Company owners may want to consider establishing an RCA when some or all of the following apply:

•  The company's earnings typically exceed the small business tax limit after paying adequate remuneration to the owners.
• the company resides in a province where corporate and personal income taxes are falling
• the company's principals are taking more income than their lifestyles require
• the company's principals intend to sell at retirement and emigrate from Canada
• the company's principals have less pension benefits than desired                

 
ADVANTAGES OF AN RCA

• The highest contribution limits allowed by a registered plan
• immediate deduction to employer and the income is not taxable to employee until monies are withdrawn.
• Flexible investment options
• Allows for personal deductions against T4 income as long as the company matches the amount prior to the corporate year end.
• High benefit security as funds are held by a custodian in trust
• Flexible settlement options allowing member control over timing of income recognition
• Does not affect RRSP or RPP contribution limits