Common Contracts
1 similar Retirement Compensation Agreement contracts
What is a Retirement Compensation Agreement?Retirement Compensation Agreement • June 25th, 2021
A retirement compensation agreement (RCA) is a non-registered plan set up by a corporation to provide benefits to the ownership, or key employees of a business. The structure is often designed as a supplemental pension for high earning business owners or staff where traditional savings plans such as RRSPs, defined contribution programs, and defined benefit pensions may not offer enough income replacement in retirement years. Employers contribute to the plan, receiving a tax deduction for doing so, and funds are taxed in the hands of employees when withdrawn.
