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

Allan Madan, CA
 Apr 18, 2012
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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  First, you will have to pay personal income tax on money withdrawn from your corporation to fund the RRSP contributions.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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