Individual Pension Plans for Canadian Business Owners

Accelerating Retirement Savings for Business Owners

If you are a business owner over 40 paying yourself a salary, an Individual Pension Plan (IPP) may allow you to contribute 2-3 times more than your RRSP limit — all tax-deductible to your corporation. The IPP is particularly powerful for business owners who started their company later in life or who have been under-saving for retirement due to reinvesting in their business.

IPP Benefits for Business Owners

• Higher contributions — $55K-$110K+ annually depending on age (vs. $32,490 RRSP limit)
• Past service buyback — Fund years of past employment, creating immediate large deductions
• Corporate tax deduction — All contributions are deductible to the corporation
• Creditor protection — Full protection under pension legislation
• Terminal funding — Additional tax-deductible contribution at plan wind-up
• Investment fees deductible — Management fees paid by corporation, not personally

Is an IPP Right for You?

The IPP works alongside your compensation strategy and retirement plan. For a detailed analysis of whether an IPP makes sense for your situation, book a consultation.