1. Individual Pension Plans The RRSP Alternative for Business Owners

2. June 18, 2015 Do You Qualify? Must be incorporated »Corporation may be public, ccpc, farm corp. »Professional services corp. Receiving earnings on T4, now and past »Dividends do not count! Ideally, earning $100,000+ At least age 40 (best at 50)

3. June 18, 2015 Individual Pension Plans IPPs are defined benefit pension plans »Maximum benefits »1 individual (and possibly spouse) »Special rules for connected persons >Actuarial assumptions used >Limited RRSP contributions >Actual earnings not average

4. June 18, 2015 Why Are IPPs So Popular? 2003 & 2005 Federal Budget increased pension limits Contribution is higher than RRSP (age 50+) Contributions increase with age Optional past service from 1991

5. June 18, 2015 Contribution Comparison 2008 AgeIPPRRSPDifference 40$21,855$20,000$1,822 45$23,970$20,000$3,970 50$26,330$20,000$6,330 55$28,922$20,000$8,922 60$31,769$20,000$11,769 65$35,143$20,000$15,143

6. June 18, 2015 IPP Advantages Versus RRSP Ongoing larger deposits ‘Top Up’ for previous years Creditor protection Contributions & expenses tax deductible

7. June 18, 2015 IPP Disadvantages Versus RRSP An IPP requires the services of experts Funds are locked-in (except Saskatchewan & Quebec)

8. June 18, 2015 Next Steps Call us today for more information (519) 675-1177 or (888) 327-5777 www.selectpath.ca