Individual Pension Plans (IPPs)

Individual Pension Plans (IPPs) are an excellent retirement tool for business owners and incorporated professionals who want to enhance their retirement benefits while receiving a larger tax deduction for their corporation. IPPs are employer-sponsored defined benefit pension plans designed to provide enhanced retirement benefits and important tax advantages. They are ideal for those between the ages of 40 and 71 with an annual T4 income greater than $100,000. IPPs offer several key benefits, including higher contributions than permitted by Registered Retirement Savings Plans (RRSPs), tax-deferred growth on IPP investments, a wide variety of pension-eligible investments, and tax-deductible employer contributions that are not considered a taxable benefit for the employee. Additionally, fees to set up and administer the IPP are tax-deductible by the employer.

An IPP can create more contribution room over and above an RRSP, and it provides a safe way to save for retirement. IPPs offer maximum pension income and maximum tax relief, and they can be included in a succession plan. Contributions to an IPP will create a guaranteed lifetime income, and any surplus in the plan may be payable to you.

Establishing an IPP can be complex, but we make it easy for you to create an IPP that’s right for you or your key employees. At [Company Name], we understand the importance of finding the right retirement plan for your specific needs. Our team of experts is here to guide you through the process and help you make informed decisions.

If you’re a business owner or an executive, an IPP can create more contribution room over and above an RRSP.

Here’s a breakdown by age:
Age 45: IPP 21%, RRSP 18%
Age 50: IPP 23%, RRSP 18%
Age 55: IPP 25%, RRSP 18%
Age 60: IPP 27%, RRSP 18%
Age 65: IPP 29%, RRSP 18%

An IPP is a registered, defined-benefit (DB) pension plan typically set up for just one member – you. It can let you build your retirement income under a tax-sheltering umbrella. Contributions to an IPP are tax-deductible to your corporation as the plan sponsor.

At CRM Financial, we offer tailored solutions to ensure that you receive the best possible retirement plan and financial protection. Contact us for a no-obligation consultation and let us help you find the IPP that suits your needs.