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ADVERTORIAL
DOLLARS & SENSE

Maximizing your Retirement Benefit using an

Individual Pension Plan

When we think of retirement planning most people would sim- Reasons to consider an IPP:
ply consider only an Registered Retirement Savings Plan. There
may be another option for some business owners, the better so- • Diversify retirement strategy
lution might be an IPP – Individual Pension Plan. • Substantially increase retirement savings vs RSP
• Attain a planned capital accumulation at retirement
Nothing wrong with the first option, but an IPP is a way to po- • Significant corporate tax deductions
tentially contribute more money on a tax-sheltered basis – and • Creditor proof
sometimes substantially more – than the maximum allowed for • Ideal for succession planning
RRSPs. • Facilitates sale of business

An IPP is basically a Defined Benefit Pension Plan IPP’s remain an attractive option so talk to your
established by an incorporated company typically financial advisor to discuss all the features, and
for one individual. IPP’s are an ideal vehicle for the make sure that this retirement tax strategy may be
self-employed, or for incorporated professionals, right for you. If you would like to discuss further
including doctors and dentists. or would like more information please feel free to
give our office a call at 519-621-1307.
IPPs, sanctioned by the Canada Revenue Agency,
define the pension benefit in advance based on in- Erica Tennenbaum, CFP, FCSI, Vice President
come and years of service. An actuarial formula is Associate Portfolio Manager and Wealth Advisor
used to calculate annual contributions funding the RBC Wealth Management
pension benefit. These plans are most advanta-
geous for people aged 40 and older, who are earn- Erica Tennenbaum, CFP, FCSI www.ericatennenbaum.com
ing over $140,000 a year on their T4, and who’ve Vice President & Wealth Advisor 519-621-1307
been maxing out their RRSP contributions.

All IPP contributions made by a corporation on behalf of an in-
dividual are fully tax-deductible to the corporation. For the indi-
vidual, an IPP is treated as a non-taxable benefit. Which means
tax savings all around.

There are other benefits. Setup, maintenance, and management
fees are also tax-deductible to the corporation. And, in some
cases, companies can make additional contributions for past ser-
vice, as far back as 1991.

Professional Wealth Management Since 1901

This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered
properly and that action is taken on the latest available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor
its employees, agents, or information suppliers can guarantee its accuracy or completeness. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities
Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business
segment of Royal Bank of Canada. ®Registered trademarks of Royal Bank of Canada. Used under licence. © 2018 RBC Dominion Securities Inc. All rights reserved.

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