The British Columbia Medical Association (BCMA) recently released the Contributory Professional Savings Plan (CPRSP) entitlement amounts for 2013. If you are an eligible physician, you should have received your personalized application with entitlement information by mail or email. If you have not received your information yet, check your BCMA online account or contact the BCMA benefits department.
I have posted a sample application form along with some notes.
- The form lists the various deadlines at the top.
- The BCMA must receive the application by December 2, 2013 if you want the CPRSP benefit paid to your RRSP by December 31, 2013. You will receive a 2013 T4A slip reporting the CPRSP benefit payment as income, and will have 2013 RRSP receipts for the BCMA contribution and your matching contribution.
- Applications received from December 3, 2013 until January 20, 2014 are paid to your RRSP within the first 60 days of 2014. RRSP contributions made in the first 60 days of 2014 are deductible on your 2013 or 2014 personal income tax return. You will receive a 2014 T4A slip reporting the CPRSP benefit as income, and will get an RRSP receipt for the first 60 days of 2014 for the BCMA contribution. Depending on when you made your matching contribution, you will also receive a 2013 RRSP receipt or first 60 days of 2014 RRSP receipt for your contribution.
- Benefits must be claimed within 3 years of the entitlement being earned or the amount is permanently forfeited. The 2011 entitlement must be claimed by March 1, 2014 to avoid being lost.
- There are two types of CPRSP benefit:
- Basic – the basic benefit requires matching. Your RRSP contribution will be matched by the BCMA dollar for dollar up to the basic entitlement amount.
- Length of Service (LOS) – this amount does not need matching, but is not paid until all the basic benefit for the year is used.
- Example – In the form above, the 2011 entitlement is still available in the amounts of $4,324.80 basic and $2,744.00 LOS. To claim the full benefit, a matching contribution of $4,324.80 must be made. There will be an RRSP deduction for $4,324.80 + $4,4324.80 + $2,744.00 = $11,393.60, and an income inclusion for the benefit received of $4,324.80 + $2,744.00 = $7,068.80.
Your investment advisor and accountant can help you decide the ideal amount to contribute and claim.
I`ll be posting more detailed information on the CPRSP and other BCMA administered benefits in the future.