Contributions—Past Service2 Tax-deductible Corporate Contributions z Flexibility to make contributions—immediately or amortised over a number of years z Higher if the plan member has unused RRSP contribution room z Increases with age and past service Tax-sheltered Savings2 z Significantly higher tax-sheltered savings relative to an RRSP z Tax savings and growth of these savings over time z Ability to save more and the growth of these contributions tax sheltered z Intergenerational wealth transfer strategies available for family IPP’s where children of owners are earning T4 income from the corporation The content of this article is intended for information purposes only and to facilitate discussion only. All amounts are estimates only and are based on the assumptions made. This information is not intended to offer taxation, legal, accounting or similar professional advice, nor is it intended to replace the advice of independent tax, accounting or legal professionals. Any tax-related information is applicable to Canadian residents only and is in accordance with current Canadian tax law. 1. A portion may have to be paid in cash (taxable) on windup 2. Contributions are tax-deductible to the corporation; all amounts are estimates only and based on the following: a. Maximum funding rules applicable for funding of designated pension plans based on tax rules in 2021 (ITR 8515) b. T4 Earnings in each year that produces maximum IPP benefit, i.e., $162,278 in 2021 c. Setup at age 45 with 15 years of past service and no RRSP contribution room, funding flexibility allows funding to be immediate or spread over a number of years d. Canadian Controlled Private Corporation (CCPC) eligible for Small Business (SMB) Tax Credit; Corporate Income of $350,000 & Retained Earnings of $300,000. 3. Advisory services are provided by licensed advisors at CDSPI Advisory Services Inc. Restrictions may apply to advisory services in certain jurisdictions. If you would like additional information about how an Individual Pension Plan can support your retirement plans, please contact our Investment Advisors3 at 1.800.561.9401 or investments@cdspi.com. You can also go online to book a meeting at cdspi.com/book-a-meeting. CDSPI was created over 60 years ago by the dental community with the sole purpose of arranging programs for the benefit of dentists who are members of CDSPI’s member associations. CDSPI is a not-for-profit organization that exclusively serves the dental community with expert advice and investment and insurance solutions. AGE 50 55 60 65 RRSP $232,200 $552,700 $1,047,800 $1,799,100 IPP $479,600 $1,046,700 $2,016,800 $3,633,500 IPP Advantage $247,400 $494,000 $969,000 $1,834,400 AGE 40 50 55 60 Past Service Contributions $155,600 $163,300 $215,700 $273,300 33 Issue 4 | 2023 | SupportingYour Practice
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