IPP & RCA
CANADA'S BEST-KEPT
TAX SAVING SECRET
Put an extra $1M aside in a tax deferred, creditor proof vehicle
Take the money you would have paid in taxes and set yourself up for a comfortable retirement instead
IPP & RCA
Save taxes now and build a nest egg for the future with IPP and RCA pension plans for owners. Canada’s best kept secret!
Individual Pension Plans (IPPs)
Set yourself up for a government-quality pension – without having to work
for the government!
Who this is for:
How can your business exit give you the life you (really) want?
Business owners of an incorporated company, including incorporated professionals or executives
Age 40 and over
Ideally earning $100,000+ (plans can be established for lower earners)
IPP VS RRSP SAVING COMPARISON
HOW IPPS WORK:
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An IPP is similar to an RRSP in that it uses an investment account to accumulate assets over time as retirement benefits.
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However, unlike the RRSP, an IPP allows for the accumulation of greater assets – up to 65% more than an RRSP.
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Like a traditional pension plan, an IPP sets your monthly income at retirement.
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An IPP also provides certain additional guarantees beyond an RRSP to further protect your financial future. Assets accumulated within an IPP are locked-in and may be used only for retirement purposes.
Increase your retirement assets
have your company make large tax deductible contributions
Allows for significant additional tax deductible contributions at inception and retirement
Allows for additional tax-deductible contributions to be made by the company should the rate of return on plan assets be less than 7.5% a year.
All costs associated with the pension plan are tax deductible to the company.
100% Creditor Proof & safer than an RRSP
Additional benefits of an IPP:
Safer investment rules and limitations compared to the RRSP
Pension plan surpluses belong to the member
Pre-determines retirement benefits
100% creditor proof
No deemed disposition of plan assets upon death in certain situations. Plan assets remain in the plan to provide benefits to surviving members
Retirement Compensation Arrangements (RCAs)
An RCA allows a company to make tax-deductible contributions on behalf of key employees for purposes of retirement to the maximum level allowable.
The highest level of retirement program available in Canada.
An RCA is often used in the following situations:
Intergenerational benefit and the family business
Expatriate executives and athletes
Golden handcuffs; key executives retention
Sale of a business
Key benefits of an RCA
WHO THIS IS FOR:
An RCA is ideally suited for high-income earners ($150,000+) such as business owners, athletes, executives, and incorporated professionals who wish to sustain their standard of living into retirement. The flexibility of the RCA allows it to be adapted to many business & tax strategies. The RCA requires a sponsoring company in order to set it up.
We work with an actuarial company to have your pensions opened and annual filings completed.
Your first step is a free consultation call to see if we’re a good fit to work together. Click the button to set up a time I’m looking forward to meeting you!