The Individual Pension Plan (IPP) is a retirement savings vehicle purpose-built for business owners and incorporated professionals. For the right business owner, the IPP is a credible alternative to an RRSP as it permits potentially higher annual contributions that are tax deductible to the business owner’s corporation (see section 8515(5) of the Income Tax Regulation 8515). An IPP allows you to build up more retirement capital over time through a tax-deferred, creditor-proof investment account that is outside the business. Upon retirement, your IPP will provide you with regular pension income.
IPPs have many features and benefits that should be considered before setting one up. IPPs are core to our wealth management practice at Newport Private Wealth and we have created this website to provide information for business owners and their tax advisors to better understand IPPs.
If you haven't looked at IPPs in awhile, it may be time to look again. Please contact us directly with your questions.