Retirement Income Planning 2025 — How To Maximize Rrifs, Cpp, Oas, And Ipps With Mackisen Cpa Auditors Montreal

Retirement income planning in Canada has never been more complex—or more important. In 2025, higher interest rates, changing CPP and OAS thresholds, and new RRIF minimum withdrawal rules are reshaping how business owners and professionals transition from accumulation to income. Without a coordinated strategy, retirees can face unnecessary taxes, OAS clawbacks, or liquidity issues. Mackisen CPA Auditors Montreal designs fully integrated retirement income plans combining Registered Retirement Income Funds (RRIFs), Canada Pension Plan (CPP), Old Age Security (OAS), and Individual Pension Plans (IPPs) to ensure tax efficiency, cash flow stability, and long-term wealth preservation.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 146.3(2): Establishes the RRIF withdrawal rules requiring minimum annual withdrawals after age 71, calculated based on age-related percentages.
Section 56(1)(a): Governs taxation of CPP and OAS benefits, requiring inclusion as pension income.
Section 60(l): Permits deduction of RRSP and pension plan contributions made before retirement.
Section 147.1: Defines registration requirements for employer-sponsored IPPs and their deductibility for the corporation.
Section 118(3): Allows pension income splitting up to 50 percent between spouses for taxpayers aged 65 or older, reducing overall tax liability.
Old Age Security Act: Provides for OAS benefits subject to recovery tax (clawback) when net income exceeds $90,997 for 2025.
Quebec Pension Plan (QPP): Mirrors CPP for Quebec residents, with contribution and benefit limits adjusted annually.

Key Court Decisions

McDonald v. The Queen (2013): Confirmed that pension splitting can be strategically applied for tax optimization if supported by compliant documentation.
Perron v. The Queen (2016): Reaffirmed that late RRSP or RRIF withdrawals are subject to tax withholding without exception, emphasizing the importance of timing in retirement income planning.
Fink v. The Queen (2020): Validated CRA’s right to recapture OAS overpayments through income reassessment but required procedural fairness.
Carter v. The Queen (2012): Recognized IPPs as legitimate corporate deductions when structured for bona fide retirement purposes.

Why CRA Targets Retirement Income

CRA audits retirement income strategies when contributions or withdrawals appear inconsistent with declared income, corporate deductions, or pension splitting claims. Excessive RRIF withdrawals without proper documentation, over-contributions to RRSPs, and aggressive IPP deductions often trigger reviews. CRA also monitors OAS recipients who attempt to circumvent clawback thresholds by shifting income to family members or corporations. Mackisen ensures all filings align with ITA and CRA policies to eliminate audit risk while optimizing after-tax retirement income.

Mackisen’s Strategy

1. Retirement Income Projection — We forecast lifetime income streams from RRIFs, CPP, OAS, IPPs, and non-registered assets, adjusting for inflation and longevity risk.

2. Optimal Withdrawal Planning — Determine the most tax-efficient sequence of withdrawals (RRIF vs non-registered vs corporate dividends) to minimize marginal tax and OAS clawback.

3. Pension Income Splitting — Allocate up to 50 percent of eligible pension or RRIF income to a lower-income spouse to reduce household tax burden.

4. Corporate Pension Integration — Establish an IPP for incorporated professionals to enhance retirement benefits and deduct larger contributions than RRSP limits allow.

5. OAS Clawback Mitigation — Structure withdrawals and dividends to keep net income below OAS clawback thresholds.

6. Tax-Free Savings Integration — Coordinate RRIF withdrawals with TFSA contributions to recycle after-tax income efficiently.

7. Quebec Compliance — For Quebec residents, Mackisen aligns retirement income reporting with both CRA and Revenu Québec requirements to ensure consistency and avoid dual assessments.

Real Client Experience

A Montreal physician nearing retirement faced a projected OAS clawback of $6,200 annually. Mackisen restructured his income by balancing RRIF withdrawals and dividends, eliminating the clawback entirely. A Quebec engineer with a corporation adopted an IPP through Mackisen’s planning, increasing deductible contributions by $40,000 per year while securing predictable pension benefits.

Common Questions

When should I start CPP and OAS? It depends on your cash flow, health, and tax rate; Mackisen calculates your optimal start age.
Can I split pension income with my spouse before 65? Only if you receive a registered pension, but RRIF income qualifies after 65.
How does an IPP compare to an RRSP? An IPP allows higher contributions for older business owners and is fully deductible by the corporation.
What happens if I withdraw more than the RRIF minimum? The excess is taxed as ordinary income; we plan withdrawals to avoid unnecessary tax.

Why Mackisen

Mackisen CPA Auditors Montreal are leaders in retirement and corporate exit planning. Our CPAs, actuaries, and tax lawyers coordinate RRIFs, CPP, OAS, IPPs, and corporate cash flows into one integrated plan that maximizes income and minimizes taxes. We protect your retirement savings from overtaxation, clawbacks, and compliance errors. Call Mackisen CPA Auditors Montreal today for your 2025 Retirement Income Planning Consultation. The first meeting is free and tailored to secure your financial future.