3. Make the most of surplus assets/strategic gifting If you have more than you’ll need for your lifetime, you could use surplus funds to help family members now and reduce your estate’s future tax bill. This might mean funding a Registered Education Savings Plan (RESP) for a grandchild, gifting cash to an adult child for a home purchase, or buying a corporately owned life insurance policy to transfer wealth in a tax-efficient manner. 4. Keep contributing to your TFSA There’s no age limit for TFSA contributions, and withdrawals are always tax-free. Even small amounts added each year can grow significantly over time, and using corporate dividends (after-tax) to fund TFSA contributions can be especially effective. 5. Consider income splitting in retirement Once you turn 65, RRIF withdrawals and certain annuity payments qualify for pension income splitting rules. This allows you to shift up to 50% of that income to a spouse or common-law partner in a lower tax bracket, reducing your household’s total tax bill. 6. Delay CPP and OAS (if it makes sense) If you have other income sources early in retirement, such as corporate dividends or non-registered investments, you might delay CPP and OAS to increase the monthly payments you’ll receive later and help keep your income lower in the early years. 7. Monitor the OAS claw-back threshold If your income nears the annual OAS claw-back threshold, you could reduce RRIF withdrawals, postpone realizing capital gains, or draw instead from your TFSA to stay below the limit. 8. Explore charitable giving Making donations to registered charities, either personally or from your corporation, can generate valuable tax credits. Larger gifts can be planned in years when your taxable income is higher, such as after selling off investments or a practice. 9. Integrate corporate and personal tax planning As a professional corporation, align your compensation strategy with your personal financial goals. For example, consider paying yourself enough salary to maximize RRSP contribution room, while balancing dividends to access funds in a more tax-efficient way without pushing yourself into a higher tax bracket. TFSA contributions, meanwhile, can always be maximized regardless of your income mix. 10. Review your plan regularly with expert guidance As you enjoy retirement your health, goals, or lifestyle might shift over time. Your retirement plan and investment approach should be flexible enough to pivot as your needs evolve. Tax strategies in retirement aren’t “one-size-fits-all.” Your income mix, personal goals, and timing all play a role, and expert guidance can help you get it right. An advisor from CDSPI Advisory Services Inc. can help you develop a personalized post-retirement plan that aligns with your complete financial picture—from insurance and investments to tax and estate planning. Through our partnership with MNP, you have access to trusted tax and accounting advice tailored to your needs. Additionally, our partnership with Scotiabank provides specialized banking solutions designed for health care professionals. Speak with an investment advisor to review your income strategy and explore ways to manage your tax bracket more effectively in retirement. Created by dentists, and exclusively for members, CDSPI helps you achieve financial well-being with tailored advice, insurance, and investments. Access to CDSPI is a benefit of your membership with your provincial or territorial dental association. This information is intended for informational purposes only. For specific situations you should consult the appropriate financial, legal, accounting or tax advisor. 33 Issue 6 | 2025 | Supporting Your Practice
RkJQdWJsaXNoZXIy OTE5MTI=