Does the strategy of high dividends and low salaries limit our ability to contribute to RRSPs?

Allan Madan, CA
 Apr 18, 2012

Yes, for two reasons.  First, you will have to pay personal income tax on money withdrawn from your corporation to fund the RRSP contributions. Second, I expect your personal income tax to be very low, so the RRSP deduction will not be helpful to you.



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