What is an Individual Pension Plan (IPP)
An IPP is a company sponsored Defined Benefit pension plan. Ipp’s are one of the most tax effective retirement vehicles that successful business owners, professionals, and executives can utilize to accumulate assets when compared to saving assets inside a corporation. An IPP is a “Super Charged RRSP” as you can contribute significantly more to an IPP than an RRSP.
Advantages of an IPP
Assets inside an IPP are creditor protected
The contributions, Actuarial fees, and Investment fees are tax deductible to the corporation
Large Initial contribution opportunity $100,000-$400,000
Higher annual contribution limits (From 30-50% more) when compared to an RRSP
Optional “Terminal funding” at retirement. This can be from $1,000,000-$2,000,000
Tax deferred investment growth
Stable and predictable retirement income with pension benefits
Succession planning opportunities
Advantageous upon the sale of your business
Additional contributions to top up any investment shortfall
Who is it for?
IPP’s are for successful business owners and high income earning incorporated professionals such as Dentists, Physicians, Accountants, or Lawyers. Ideal candidates have a historic T4 income of $100,000 or more and are between the ages of 40 and 71.
How to determine if an IPP is right for you
Obtaining an IPP projection is simple and free of charge. We will complete a short Data collection form with you obtaining information such as your historic T4 income, Date of birth, Date of Incorporation, and your RRSP details. An actuary will then create your tailored Individual Pension Plan which we will go over with you in greater detail.
Contact Core Wealth Solutions and an experienced Certified Financial Planner® will reach out to you to start the process.
Why Core?
IPP’S require a team of experienced advisors to implement as they can be complex. Core is experienced in advising clients on IPP’s, simplifying the process, and explaining why an IPP would be advantageous for them and what to consider. Our team of trusted Pension specialists at Westcoast Actuaries have over 150 years of collective pension consulting experience and make it easy for our clients and their accountants when it comes to administering the IPP.
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