Individual pension plan (IPP)
For business owner or senior executive.
Individual pension plan (IPP)
Contributions are higher than the maximum allowable for RRSPs
- A defined benefit pension plan designed for a single individual.
- For business owners and high income earners
Target client
- A business owner or senior executive aged 45 and over
- A salary of $75,000 or over
- Owns directly or indirectly at least 10% of the shares of the company
- Has accumulated years of service prior to incorporation of the scheme entitling contributions
Plan type
- Business: contributions are paid by the employer
- Defined benefit: benefits are predetermined (an actuary calculates the contributions to guarantee the amount)
Taxation
Contributions are deductible from business income