Anyone with a small business will realize that putting retained earnings inside an RRSP removes a great deal of financial flexibility for your business moving forward.   Keeping retirement funds inside the corp allows one to save appropriately for retirement but also keeps them available as a rainy day fund in the small chance they are needed.  Small businesses are risky endeavors, they do not have the same financial capital to withstand financial shocks as larger businesses, that is why tools like this are helpful.   JT clearly does not understand this at all.  ...the TFSA may be a bit of a better argument, but he already slashed that in half