Increasing Retirement Income with an IPP

By providing the maximum benefits permitted under the Income Tax Act, an IPP generally allows higher tax-deductible contribution amounts than those permitted under an RRSP. For individuals who wish to maintain their pre-retirement lifestyle when retired, IPPs are an effective way to accumulate tax-sheltered funds.

Who can Open an IPP?

IPPs are designed for incorporated business owners and incorporated professionals.

Reasons to Consider an IPP

• Substantially higher retirement savings compared to an RRSP
• Higher annual contributions than an RRSP for individuals over age 40
• IPP investments grow on a tax-deferred basis
• Assets within an IPP are protected from creditors
• Contributions and IPP related expenses are tax-deductible for the sponsoring company
• Possible to make contributions for past years of employment
• Additional lump-sum contribution permitted at retirement
• Able to compensate for investment and funding shortfalls through additional contributions
• Several options at retirement
• At death, remaining value goes to surviving spouse or estate

Suitable Candidates

• Individuals over the age of 40 who earn a T4 income
• Incorporated business owners and family members
• Incorporated professionals
• Senior executives
• Small businesses with sufficient cash flow to fund the IPP

IPP

See attached article for more information on Individual Pension Plans.