Individual Pension Plans

The Individual Pension Plan (IPP) is a defined benefit plan for business owners or key employees. More effective than an RRSP, the IPP offers numerous tax advantages, greater flexibility and larger contributions.

At Mallette Actuaries Inc., we have over 25 years of experience in establishing and administering IPPs. We have more than 750 IPPs in force for organisations in all fields and throughout Quebec. Our experts work with our clients to establish IPPs tailored to their needs.

The IPP is generally intended for the owner of a profitable business who owns at least 10% of one of the company's share classes, is ideally 40 years of age and has T4 employment income.

To determine whether an IPP is appropriate, an actuary should be consulted. A simulation will enable you to carry out a cost-benefit analysis and decide whether the IPP is relevant. What's more, the simulation is free of charge!

We invite you to contact us to obtain our IPP leaflet and our questionnaire for a free simulation.

Some of the benefits for the company:

• Significant tax savings

• Reduction in passive income

• Maximisation of the small business deduction (SBD)

• No social security charges on contributions

• Deductions for plan set-up and administration costs

Some of the benefits for the member :

• Company-funded scheme

• Predictable retirement income

• Contributions in excess of the RRSP contribution limit

• Possibility of contributing for years prior to the introduction of the plan

• Tax-sheltered savings and returns

• Income splitting from age 60

• Return guaranteed by the company (7.5%)

• No minimum contribution required

• Amounts accumulated are not locked in

• Flexibility at retirement

• Possibility of intergenerational transfer

• Assets protected from creditors