Individual Pension Plan (IPP)
For business owners and high earners.
Retirement
Contributions in excess of the RRSP contribution limit
- Single-person defined benefit pension plan
- For business owners and high earners
Target customers
- CEO, senior manager or executive aged over 45
- Salary of $75,000 or more per year
- Direct or indirect ownership of at least 10% of the company’s shares
- Have accumulated years of service prior to the introduction of the plan giving entitlement to contributions
Plan type
- Company plan: employer-paid contributions
- Defined benefits: amount of pension known in advance (an actuary calculates the contributions required to guarantee it)
Taxation
Contributions deductible from business income