Individual Pension Plans

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Save up to 65% more for retirement!

An Individual Pension Plans (IPP) is a defined benefit pension plan that can provide maximum tax-deductible contributions for your retirement.  Similar to RRSPs, IPPs uses an investment account to provide for retirement.  Unlike RRSPs, IPPs provides a certain guarantee of retirement benefits that are locked-in for retirement only.  In addition, it allows for more accumulation of assets, up to 65% more.

Who should take advantage of the IPP?

Business owners, their families, key executives and professionals with professional corporations

Who is the ideal candidate?

  • Business owner, incorporated professional or executive
  • Age 40 – 65
  • 10 + years with a corporation
  • Earnings over $132,334 in T4 or T4PS income

What are the advantages and disadvantages of the IPP compared to RRSP?

The IPP advantages:

  • Higher contribution amounts
  • Creditor-proof assets
  • Flexible benefit settlement options
  • Higher investment standards
  • Deficits can be made up using pre-tax dollars
  • Expenses tax-deductible for the company
  • Benefit to employee not taxable

The IPP disadvantages:

  • No access to funds while employed
  • Locked-in
  • More legislation, therefore higher expenses
  • Excess surplus may reduce future contributions