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.