With the introduction of Personal Real Estate Corporations (PREC) in BC, real estate agents who decide to incorporate have more retirement options than before. 

Without an “employer/employee” relationship between the PREC and the individual real estate agent, and the payment of employment income (T4 or salary/bonus), it was impossible for an agent to join a registered pension plan.   

Those agents who opt to incorporate their business using a PREC now have the option of taking some of their compensation in the form of T4 income.   

So long as the agent is under the age of 71, as an agent/employee of their own PREC, they’re now eligible to join a pension plan. 

This personal pension plan comes with a variety of tax and other advantages that'll be featured in the Realtor News every week.   

For example, did you know  the total dollars you can contribute to a pension plan over a lifetime is often three times greater than what you could contribute under a Registered Retirement Savings Plan (RRSP)?   

This alone translates into much lower taxes owed, and significantly more capital ready to be enjoyed in retirement than with an RRSP.    

Watch for more articles that’ll detail the legal mechanisms allowing for this smarter way to save for retirement and more.

Contributor: Pension lawyer Jean Pierre Laporte, BA, MA, LLB. (Jp.laporte@integris-mgt.com)

• What’s a REALTOR® trying to save for retirement to do?
• Make your best retirement plan with GVR and INTEGRIS
• The Critical Path podcast – REALTOR® pension plan with INTEGRIS CEO JP Laporte