Individual pension plan rules

Individual Pension Plans (IPP). An individual pension plan (IPP) may be for you. The rules for IPPs are similar to those for RRSPs, in that you must start receiving income . The ITA rules require the IPP to pay me the greater of: 1. Jump to IPP rules and regulations - The pension plan document indicates a formula defining the amount of benefit to be earned by the plan member.

Plan Investments must follow strict guidelines. Plan sponsor contributions to an IPP, as certified by an actuary, are deductible from corporate income. Benefits paid out of the IPP are taxed upon receipt.

Despite their numerous advantages, IPPs remain relatively . An IPP may provide higher . PENSION PLANS : This past y, the federal government introduced proposals to overhaul the tax rules affecting active private corporations. Safer investment rules and limitations compared to the RRSP .