pensions plans

/Tag: pensions plans
Oct 18, 2018

Individual Pension Plans: A Way for Entrepreneurs to Manage the New Passive Income Tax Rules

2018-10-19T18:05:30+00:00October 18th, 2018|Financial Planning & Tax|

Considering the historically favourable tax-deferral strategy of retaining and investing corporate earnings vs paying dividends, accumulating assets in a company has long been the default retirement plan for many business owners.  Recent changes to how passive corporate income is taxed has renewed interest in a favourable but lesser-known alternative to retained corporate earnings and RRSPs, namely, the Individual Pension Plan (IPP). Most of us are familiar with the common defined benefit pension plan.  Based on a formula involving matching ratios, employee service with the company and income level, employees and their employer make regular contributions to the plan.  In turn, [...]