Advice-only planning for doctors at every stage, from residency and locum work to contract practice, incorporation, family planning and retirement.
Physicians face some of the highest marginal tax rates in the country, so the largest planning wins are almost always on the tax side. We build these strategies into your plan and coordinate them with your accountant.
Deferring tax by retaining earnings inside a medical professional corporation, and knowing when incorporation actually pays off for your stage of practice.
Structuring how you pay yourself to balance RRSP room, CPP, tax instalments and cash flow, instead of defaulting to one or the other.
Managing investment income earned inside the corporation so passive earnings do not grind down your small business deduction.
For established incorporated physicians, a defined-benefit vehicle that can allow larger tax-deductible contributions than an RRSP.
Sequencing student debt, mortgage and corporate cash so paying down debt and investing are coordinated for the best after-tax result.
Planning ahead so a future sale or wind-down of the corporation is structured to use available exemptions and minimize the tax owed.
Once your professional corporation is established, a registered pension plan can shelter more than an RRSP and build a dedicated, tax-advantaged retirement pool. Two structures come up most often, and we help you decide whether either fits.
A defined-benefit pension sponsored by your corporation for a single member, usually the incorporated physician. Because room grows with age, an IPP can allow larger tax-deductible contributions than an RRSP, typically from your mid-40s onward.
Contributions are a deductible corporate expense and grow tax-deferred, past-service years can often be funded, and assets generally carry creditor protection. The trade-offs are setup and actuarial costs, required funding and less flexibility than an RRSP.
The broader category of employer-sponsored registered pensions, an IPP being one specialized single-member version. An RPP can be defined-benefit or defined-contribution, and can extend pension benefits to a spouse or family members genuinely active in the practice.
It suits owners who want contribution flexibility or to provide staff and family with a pension. Corporate contributions are tax-deductible and grow tax-sheltered, with income taxed in retirement when rates are often lower.
Training stage, practice model, compensation, debt repayment, insurance, investing, tax and retirement income all affect one another. We help you coordinate the tradeoffs with your accountant and other advisors.
We help weigh timing, practice model, cash flow, tax deferral, administrative cost and whether incorporation fits your current stage of practice.
The right mix can affect RRSP room, CPP contributions, tax instalments, mortgage qualification, benefit planning and retirement flexibility.
Doctors often need reserves for billing delays, tax instalments, staff, lease commitments, equipment, leave, vacation coverage and slower clinic ramp-up.
Locum, associate, contractor, partner, shareholder, salaried physician and overhead-sharing arrangements each create different planning issues.
Retained earnings can become a long-term investment pool, but investment policy, RRSP/TFSA coordination and passive income rules need attention.
We map corporate withdrawals, RRSP/RRIF income, CPP/OAS timing, tax brackets, estate liquidity and the transition out of active practice.
A resident, locum, contract physician, incorporated doctor and retiring specialist do not need the same plan. Your income, benefits, tax exposure, debt, family needs and practice structure can change quickly.
We help clarify what should happen now, what can wait, and what needs to be coordinated across personal cash flow, professional income, insurance, investments, incorporation decisions and long-term retirement income.
Email us directly at [email protected], or book a call to start the conversation.