Individual Retirement Plan
By contributing to an Individual Pension Plan, you can maximize your retirement plan and enjoy significant tax benefits.
The Individual Pension Plan (IPP) is a defined benefit registered pension plan that is generally designed for business owners or senior executives. In either case, you must be at least 45 years old and earn more than $75,000 a year. The main reason? The higher the age and the salary, the higher the contributions made by the company!
A IPP can be personalized according to the needs of each participant and offers many advantages :
- As with a RRSP, contributions can grow tax-free as long as no withdrawals are made.
- You can contribute more to a IPP than you can to a RRSP.
- IPP contributions and administration costs are fully tax deductible for the company.
- Company contributions are not considered a taxable benefit for the participant.
- The participant can contribute for years of service prior to the establishment of the IPP, which will increase the potential retirement savings.
- According to the applicable pension plan legislation, the value of the pension resulting from contributions may be converted into a RRIF or a LIF.
- Most investment products are IPP eligible.