Individual Pension Plan (IPP)

For a business owner, an IPP is a type of pension plan that can offer you tax advantages. It enables you to maximize the amounts set aside for retirement. All requests for quotes are free of charge and involve no obligation.

Services Financiers Summum

What is an IPP?

  • An Individual Pension Plan (IPP) is a registered retirement plan in the same way as an RRSP, but is much more advantageous.
  • Your business makes the contributions on your behalf, and they are therefore not taxable for you before you retire.
  • This plan enables your business to finance your retirement and to enjoy some very attractive advantages.

Who is it intended for?

  • IPPs are intended for business owners and managers who have earned or who are earning wages or salaries (T4)
  • Between 40 and 71 years of age
  • A husband or wife who works for the business may be eligible without being a shareholder.

The advantages of IPPs

How an IPP functions

  • Contributions are 100% tax deductible for the business
  • Can reduce passive income in the management company
  • Contributions are non-taxable for the owner and social costs do not apply
  • Additional cotisations allowed for past and future services
  • The annual contribution ceiling is higher than that of an RRSP
  • If the return on the investments is below 7.5%, the business may offset the gap. This special contribution is deductible for the business.
  • Administration and management fees can be billed to the business and are tax-deductible
  • Upon retirement, your business may substantially enhance your plan through additional tax-deductible contributions
  • Before the sale of your business, the IPP is a very advantageous option.

Our firm coordinates all the stages with an outside actuarial firm.

At the time of setup

  • Creation of a trust deed for the IPP
  • Cotisations by the business of unused RRSP rights
  • Opportunity to top up for past service
  • Contributions for current service with a higher ceiling than that of an RRSP


Contributions during the lifetime of an IPP

  • Contributions by the business for current service
  • Additional deposits in the event of an actuarial deficit (annual yield below 7.5%)
  • Actuarial valuation (every 3 years, or prior assuming an appropriate economic context)


Upon retirement / sale of the business

  • Receive a retirement income from the IPP:
    • Opportunity to upgrade your plan to allow for additional cotisations
  • Transfer of the IPP (2 options) :
    • Purchase of an annuity with an insurer
    • Transfer into an RRSP / RRIF

Actuarial fees to administer an IPP

  • Usually, actuaries charge $1,000 per year as regular fees for implementing of an IPP, for the annual governmental follow-up and for the actuarial valuation every 3 years.
  • Exclusive offer for members of Les Dentistes Propriétaires du Québec: an annual fee of $525 per year would apply, for savings of $475


A 50 years old owner dentist who has been working in their business for 10 years and received wages over $150,000.