Product Description:
Defined under subsection 147.1 of the Income Tax Act (Canada) as a "registered pension plan", an IPP is usually established for one 'employee' of a company (owner, senior executive, etc.) under which the employer contributes to a trust account to fund the required pension benefits.
Registration of the IPP with Canada Revenue Agency ["CRA"] is provided by the employer's actuary/consultant. Contributions made to an IPP are generally fully deductible by the employer in the year of contribution.
Product Benefits:
Many companies use an IPP as an added benefit to their compensation package to attract and retain their senior executives.
Bundled IPP:
Canadian Western Trust ["CWT"] and IPP INC. have partnered up to offer the Bundled IPP Product, featuring a step-by-step guided process, a competitive fee structure and superior service for setting up a pension plan:
Traditional IPP
Under a traditional IPP model, an advisor would have to approach all the different parties involved and coordinate and act as a middle-person between each of them. This process could end up very time-consuming, complicated, and costly. |
Bundled IPP
With the Bundled IPP, CWT and IPP INC. have consolidated the process to give advisors an easy, one-stop solution to set up an individual pension plan and capitalize on business from their high net-worth clients. |
At CWT, we are commited to strategic partnerships that streamline processing and minimize costs for our clients. With IPP INC., CWT has teamed up with an actuarial consulting firm dedicated to developing, implementing and managing comprehensive retirement programs.
As a corporate trustee, CWT offers:
- Preparation and execution of Trust Agreement,
- Overall safekeeping of plan assets,
- Accepting contributions,
- Processing benefit payments,
- Settling all purchases &/or redemptions of pooled &/or mutual funds AND securities,
- Processing dividends, interest payments,
- Issuing applicable CRA tax slips and preparing/filing annual T3P tax return,
- Preparing activity statements for the plan-owner and the employer.
Fees:
Fees are determined in accordance with the responsibilities outlined in the specific plan agreements.
For More Information:
For more information about IPPs or the Bundled IPP product, please contact us.