Individual Pension Plans (IPP) for Business Owners
Date and Time
Tuesday Oct 16, 2018
9:00 AM - 10:00 AM MST
Tuesday, October 16
9:00am - 10:00am
Location
Quality Hotel & Conference Centre
424 Gregoire Dr.
Fees/Admission
Free to attend but please pre-register
Description
Are you an owner/manager, at least 40 years old, and consistently earning over $100,000? The Individual Pension Plan, or IPP, is a special type of "defined benefit" registered pension plan that is designed primarily for highly paid owner-managers, in order to provide the individual with the maximum amount of pension benefits allowed uner the Income Tax Act for defined benefit plans. A defined benefit plan determines the retirement benefit through a formula based on the plan member's average salary and years of plan membership or service.
Summary of the advantages of IPPs
- Greater tax-assisted savings than through RRSPs or Defined Contribution pension plans
- Company contributions to the IPP are exempted from Canada/Quebec Pension Plan contributions, EI premiums, and provincial payroll taxes
- Creditor protection is applicable to most assets which is not available with respect to RRSPs in most provinces
- A guaranteed level of retirement income for the owner/manager is being generated outside the Company. The owner/manager does not have to rely solely on the proceeds of selling the business to fund the owner/manager's retirement.
