Individual Pension Plan (IPP) for employees in Canada

Individual Pension Plan (IPP)

Are you a business owner and have some top-quality executives? This one-person defined benefit pension plan provides additional tax-sheltered retirement savings.

Advantages

• Reduces tax: contributions reduce the company’s income and reduces the taxable amount
•  Lowers shareholders’ equity (retained earnings), which facilitates the sale of the company
• Prevents creditors to seize assets in an IPP
• Cancels social security payments on contributions for the employee, unlike an RRSP
• Allows you to save more for retirement because the contribution limit is higher than that with an RRSP