Individual Pension Plans (IPP)

An ideal opportunity for highly paid Executives and Professionals, the IPP can supplement an RRSP, especially if the RRSP Contribution room has been fully utilized.

You have to be an employee of a corporation for this to work. For Professionals this would require formation of a Professional Liability Corporation. It is the corporation which funds the IPP on behalf of the executive or professional.

However, it’s not all sunshine and lollipops—the fees can be significant, the commitment placed on the corporation to fund the IPP annually may become a strain should business slow and cash flow become tight, and the age of the individual holding the IPP is an important factor.

Still a potentially valuable strategy to increase retirement assets.