Individual Pension Plan
An IPP provides another opportunity for compensating key executives. These employees are likely key to the Company's success and the implementation of an IPP can reward these employees while simultaneously providing an incentive for them to stay.
An IPP for a family business can be an effective way of transferring registered assets to the children on a tax deferred basis. On retirement of the parent business owners, the children taking over the business are added as members of the existing IPP plan. The parents will use the IPP to fund their retirement and any residual amount left in the IPP, at the time of the passing of the second parent, will transfer to the next generation tax free.
Transitions Wealth Strategies provides guidance as to when an IPP is appropriate and coordinates the set-up. We are aligned with an established actuarial and financial consultancy firm that specializes in the provision of tailored IPP programs that meet all of the Canada Revenue Agency guidelines.