A Strategic Retirement Solution

The Individual Pension Plan (IPP) is a defined benefit retirement plan designed for business owners and key employees. Offering greater contribution limits and enhanced tax advantages compared to a Registered Retirement Savings Plan (RRSP), the IPP provides a flexible and powerful tool for long-term financial planning.

Who Is the IPP Designed For?

The IPP is ideally suited for owners of profitable businesses who:

  • Hold at least 10% of a class of company shares
  • Are approximately 40 years of age or older
  • Receive T4 employment income

If you fit this profile, the IPP can become a powerful tool for your retirement planning.

Corporate Benefits of an IPP

  • Substantial tax savings
  • Reduction in passive income
  • Optimization of the Small Business Deduction (SBD)
  • No social security charges on contributions
  • Deductibility of plan setup and administration costs

Member Benefits of an IPP

  • Employer-funded retirement plan
  • Predictable and secure retirement income
  • Contributions exceeding RRSP limits
  • Ability to contribute retroactively for prior service years
  • Tax-deferred growth on savings and investment returns
  • Income splitting available from age 60
  • Guaranteed return of 7.5% by the company
  • No mandatory minimum contributions
  • Assets are not locked-in
  • Flexible retirement options
  • Potential for intergenerational wealth transfer
  • Protection of assets from creditors

For personalized guidance and to explore how an IPP can benefit you or your organization, please contact us. We are committed to helping you build a secure and tax-efficient retirement strategy.

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