IPP – Individual Pension Plans
Lower Corporate Taxes
One of the most significant tax advantages associated with the IPP is the deductibility of contributions made by an employer to the plan. Eligible contributions will be deductible to the corporation if made in the fiscal year or within 120 days after the end of the fiscal year.
Any investment income earned within the IPP will be exempt from tax, creating a powerful vehicle for compounding investment returns.
AFINA has partnered with an actuarial services firm to setup and maintain IPPs for our clients at a minimal cost. The tax-deferral and investment compounding benefits of the IPP typically far outweigh the IPP administration costs. Book a 20 minute call with us today to setup your IPP.
AFINA invests IPPs in our AFINA Affinity Managed Account product. The management fee ranges between 0.65% and 1.55% annually (plus HST), depending on the size of the IPP. A significant benefit is that our management fee expense is tax-deductible by the corporation.
The AFINA Affinity Managed Account is a portfolio of our North American equity selections. The number of positions will range from 20-35 depending on market conditions. Each equity position may have a weighting of between 2% and 5%.