Individual Pension Plans

Individual Pension Plans, Oakville & Toronto

An Individual Pension Plan (IPP) is a strategic and beneficial way for professionals and business owners to accumulate retirement funds in a highly tax efficient investment. 

If you are a top executive or own your own business, and are 40 years of age or older, an Individual Pension Plan (IPP) may be an attractive alternative to an RRSP.

The IPP is an employer-provided program that can replace the RRSP savings and employee may be considering.

To be eligible for an IPP, you must receive pension eligible, T-4 employment income. Self-employed income, partnership income and dividend income are not eligible as pensionable income. 

The main difference between RRSP savings and IPP contributions is that IPP contribution limits for individuals in the top tax brackets increase as you get older. Unlike RRSP limits which top out at the highest tax brackets for any age group, IPP contribution limits will continue to rise, exceeding RRSP limits by almost $2000/yr at age 40 and rising to over $17,000 more than RRSP’s by age 65.

Our Investment Management Team can help you determine if an IPP may be advantageous in your financial situation.

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