Business Services - Individuual Pension Plan

Business owners, key executives and professionals with Professional Corporations face a problem most other employees do not. How can they build assets large enough to maintain the same lifestyle upon retirement when the rules governing Registered Retirement Savings Plans (RRSP) and Registered Pension Plans (RPP) severely restrict them? Business owners may have the additional problem of trying to move funds out of the business tax-efficiently.

What is an IPP?

An IPP is a personal defined benefit pension plan, with benefits taxed upon receipt, by the member. The plan allows for the potential to accumulate a greater amount of assets than in an RRSP. Plan contributions are determined by an actuary to provide sufficient assets at retirement. Contributions are made by the plan sponsor (the company), and all expenses for setting up and funding the plan are deductible by plan sponsor. The plan has full creditor protection, and is governed by more prudent investment rules than a RRSP.