Posted under: IPP
A common misconception is that IPPs are complicated, but the reality that IPPs are easier to set up than you think . Once you have decided that an IPP is the right fit, you can enjoy the benefits of corporate deductions and enhanced retirement savings with ease.
The Individual Pension Plan (IPP) is widely regarded as one of the most powerful savings vehicles for business owners and incorporated professionals. Yet many advisors and accountants avoid discussing the IPP with their clients because of its perceived complexity. In reality, GBL handles the complexity so that advisors and their clients can enjoy their benefits with ease. IPPs are easier to set up than you think.
Step 1: Initial Consultation
Explore how an IPP could be the right fit for both your corporation and your personal retirement goals. GBL will work with you, your accountant, and your financial advisor to provide a client-specific projection of the IPP contribution room, maximizing defined benefit limits available in Canada and outlining the future benefits you will receive.
Step 2: Plan Setup
Once everyone is on board, the next step is plan setup. Attention to detail is crucial here, as incomplete corporate and employment history can cause delays and issues with CRA registration. GBL will ensure all necessary information is gathered and will prepare all required documents to establish the plan, create a trust to hold the funds, and register the plan with CRA. Typical turnaround for GBL to set up an IPP is 1-2 weeks.
Step 3: Funding and Ongoing Benefits
A few weeks later, CRA will confirm the registration number, allowing your advisor to open the account. Typical turnaround time for CRA to fully approve an IPP is 2-3 months; however, a “Deemed” registration that allows partial funding of the IPP typically takes 4-6 weeks.
From here, it is smooth sailing. Fund the IPP account with annual or monthly transfers from the corporate account. Three-year funding reports will confirm the contribution amounts, and your team at GBL will notify you when adjustments are required.
Annual Maintenance
Each spring, clients and accountants must ensure IPP details are reported on the T4, and advisors need to send us the year-end statement and details. GBL will take care of the rest.
Handling Issues and Life Events
Despite due diligence, issues can arise, and life events may impact the IPP. GBL is here to support you. Whether CRA requires a closer look or corporate and trustee changes occur, our annual flat fee ensures no extra charges for necessary revisions. During major life events, GBL will provide clear settlement options to simplify elections.
IPPs are easier to set up than you think. Contact GBL to get started.
Founded in 1995, GBL is a leading provider of retirement, health, and cross-border solutions for business owners, and corporate pension administration across Canada. With offices in Calgary and Toronto, we have served 7,000+ clients, have 3,000+ Financial/Investment Advisors in our network, actively manage 2,000+ IPPs, RCA, and SERPs. We have created 1,000+ HBPs and 3,000+ FMVs. We’re known for our industry leading client service and administration, as well as our top-notch actuarial group. Contact us today at [email protected] or 403.249.1820 and follow us on LinkedIn to learn how we can help Build Your Future. www.gblinc.ca
