Individual Pension Plan (IPP)

An Individual Pension Plan or IPP is a defined benefit pension plan registered with the Canada Revenue Agency and the provincial regulator. It allows individual between the ages of 40 to 71 to substantially increase their retirement savings in comparison to a Registered Retirement Savings Plan (RRSP). Not only are the regular annual contributions greater than an RRSP, the expenses incurred in managing the assets are also tax deductible. This allows for further contributions to top-up the plan and maximize the assets available for tax-sheltered growth.

Highlights

  • Larger regular contributions than RRSP (25-70% more)
  • Potential to purchase optional Past Service back to 1991
  • Additional contributions available for members who retire prior to age 65
  • Plan expenses are deductible by the plan sponsor
  • Assets are secured from creditors
  • Multiple individuals may participate in a single plan
  • Multiple corporations may participate in making contributions-obtaining the deductions
  • Plan surplus belongs to the participants

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