Page 109 - A Canuck's Guide to Financial Literacy 2020

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With an IPP, due to higher contributions, you’re able to grow your RRSP quicker over time.

Opening an IPP

IPPs are usually targeted to incorporated business owners, or corporations with key
executives who are seeking an enhanced retirement income than what an RRSP can
provide. These individuals would be 40 years or older, earning eligible T4 employment
income of at least 2.5 times the YMPE ($146,750). The YMPE for 2020 is $58,700. IPPs
would then be opened with your plan provider and be registered with the CRA who
determines the maximum limit that account holders can withdraw in retirement on a given
year.

Benefits of IPP

Tax Deduction
▪ Employer contributions are tax deductible
Credit Protection
▪ Since it’s a registered pension plan, it’s creditor proof and assets exempt from
seizure