The benefits of setting up an individual pension plan (IPP)
Incorporated physicians can enhance their retirement strategies through an Individual Pension Plan (IPP). IPP is an alternative to Registered Retirement Saving Plan (RRSP) but with an enhanced contribution limit. Doctors spend countless hours caring for the health and well-being of their patients and often are unaware of all the ways to enhance retirement assets.
An IPP can save medical practitioners a large amount of money on taxes. The contributions you make to your IPP are tax-deductible. IPPs generally are a good fit if you are:
Setting up an IPP
When you set up an IPP it allows you to increase your contribution limit as you age. For example, after a physician surpasses the age of 40, the contribution limit to an IPP is significantly higher when compared to other retirement savings plans such as RRSP. An IPP allows you to save more for retirement.
Setting up an IPP can be a tedious process, but our team at IFMS works directly with medical practitioners to take that burden off. Share your retirement goals with us and we will help you reach them.
Benefits of an IPP
An IPP is a benefit plan for a singular person so for a physician, the employer or incorporation contributes to the plan. The incorporated medical practice would make contributions to the IPP for you (the physician) and the tax-deferred plan is beneficial for both the corporation and the physician. This is the primary reason why many physicians are adding an IPP to their retirement plans.
Benefits of an IPP: