Individual Pension Plans (IPP)

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An Individual Pension Plan (IPP) is a defined benefit pension plan sponsored by an incorporated business. It’s designed for business owners and key employees, providing higher tax-deferred retirement savings than an RRSP—especially for individuals over the age of 40.

We simplify the process of setting up and managing your IPP by working directly with a qualified actuarial firm to ensure compliance with Canada Revenue Agency (CRA) and pension legislation requirements.

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Who Should Consider an IPP?

An IPP is an ideal retirement solution for:

• Business owners over age 40
• Professionals with incorporated businesses
• Individuals earning T4 income of $100,000 or more annually​
  
  

Key Benefits

• Higher Contribution Limits: Compared to RRSPs, IPPs allow for larger annual contributions, particularly as you age.
• Corporate Tax Deduction: Contributions made by the corporation are tax-deductible for the business.
• Tax-Sheltered Growth: Investments within the plan grow on a tax-deferred basis until retirement.
• Past Service Contributions: Lump-sum top-ups are allowed to fund years of past service.
• Guaranteed Retirement Income: The plan provides a predictable, pension-style retirement income.
• Creditor Protection: IPP assets are typically protected from creditors under pension legislation.

CRA Compliance at Every Step

IPPs are registered with both CRA and the applicable provincial pension authority. All contributions must follow actuarial guidelines, and annual valuations are required to ensure the plan is adequately funded. If the plan’s investment return falls below expectations, the corporation may be required to contribute more to meet the defined benefit obligation.

Getting Started:

Our team will guide you through:

• IPP suitability assessment
• Coordination with actuarial and pension specialists
• Plan registration and ongoing administration
• Investment strategies aligned with plan objectives

Contact us today to learn how an Individual Pension Plan can help you build a secure and tax-efficient retirement while maximizing the benefits for your business.