• Jeff Sproul

In·di·vid·u·al Pen·sion Plan (IPP) – noun

Updated: May 2


It seems that corporate Canada can’t do away with its defined benefit pension plans fast enough. But for the independent business owner, they’re an attractive option - if the plan-holder is the business holder.

An Individual Pension Plan (IPP) is a registered, defined benefit plan available to incorporated business owners and professionals. Contributions are made through the corporation based on annual income, age, and years of service. IPPs maximize retirement income savings by benefitting from the enhanced funding under Canada Revenue Agency (“CRA”) guidelines.

WHAT ARE THE BENEFITS OF AN IPP?

  • Guaranteed funding

  • Defined retirement income stream

  • Indexation for inflation

  • Creditor proofing

  • Estate planning

  • Tax deductible past-service contributions for earnings since 1991


IS AN IPP RIGHT FOR YOU?

If you…

  • are an incorporated business owner or professional, ideally over 40 years of age

  • and receive significant employment income from your company (T4, T4PS)


…an IPP can work for you.


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