Put your business to work for your RETIREMENT.

Until recent changes in Income Tax Legislation, owners and key executives of small businesses were disadvantaged by pension rules that limited their participation in traditional registered retirement savings plans (RRSPs).

With 1991’s revisions to this legislation, Individual Pension Plans (IPPs) and Advanced Individual Pension Plans (AIPPs) were developed to counter that disadvantage, and offer a retirement savings solution better suited to these high-earning individuals.

In the most basic terms, an IPP/AIPP™ is a defined benefit pension plan set up for one person, most often set up for the owner of a business. Sanctioned by the Canada Revenue Agency, IPP/AIPPs™ allow for higher tax-deductible contributions, and in turn, higher tax-deferred accumulations than traditional RRSPs and non-IPPs.

1. Obtain larger tax deductions compared to an RRSP.
2. Contribute for past service.
3. Protect your assets from creditors.
4. Retain ownership of plan assets.
5. Guarantee lifetime income for members and their spouses.
6. Amend your terms at retirement.
7. Make Investment Management Fees Tax-Deductible.

IPP/AIPPs™ make the most sense for executives and business owners (40 years and older) who have historically maximized their RRSP contributions, and have the income to support this tax deferral arrangement (T4 income of more than $100,000). The plan must be sponsored by an incorporated company.