The Doctors of BC administers the Contributory Professional Retirement Savings Plan (“CPRSP”) enabling physicians to receive funds towards their retirement without any required matching contributions. Key points to note re: the program are as follows:
- There are two portions to be claimed: Basic Benefit + Length of Service (“LOS”) which increases annually based on years of service.
- The max 2024 claim is $12,600
- The funds must be contributed into a Tax-Free Savings Account (“TFSA”)/ Registered Retirement Savings Plan (“RRSP”)/ Registered Pension Plan (“RPP”)/ Individual Pension Plan “IPP”)
- No matching payment is required
- Proof of contribution is not required at the time of application for TFSA/RRSP however receipts must be kept for at least 2 years for potential audit
- You may claim for contributions already made earlier in the applicable year otherwise you must contribute within 2 weeks of receipt of funds from the Doctors of BC
- Lack of proof of contributions will result in future benefits being clawed back
- Funds must remain in your registered investment account until retirement (exceptions are withdrawals for the Home Buyers’ Plan (“HBP”)/ Lifelong Learning Plan (“LLP”)
- Ensure the benefits are paid to you personally and not your corporation. You will be issued a personal T4A tax slip for this payment and therefore if the funds are deposited into your corporation there is risk of double taxation (an exception to this is if your corporation contributes to RPP/IPP and you have applied under this basis)
- Contributions to a spouse’s RRSP or TFSA directly do not qualify however you may contribute to a Spousal RRSP account. Multiple years may be claimed at once
- Benefits expires after 3 years on March 31 of each year
- March 31, 2025 is the deadline to claim benefits for the 2022 year
- Benefits are taxable in the year of receipt
To make your claim visit www.doctorsofbc.ca to log into your account. Under the My Account heading select My benefits/Claim CPRSP/See Details.
Don’t miss out on claiming this free money and ensure you speak with your trusted Purtzki Johansen & Associates advisor if you are ensure which registered account is most suitable to contribute to.
