An individual pension plan (IPP) is a retirement savings plan available to residents of Canada. It is designed to provide individuals with a tax-efficient way to save for their retirement. The plan allows individuals to contribute a portion of their annual income to a registered account, where it can grow tax-free until retirement.
One of the key benefits of an IPP is that it allows individuals to control their own retirement savings. Unlike other types of pension plans, which are typically managed by employers or financial institutions, an IPP is managed by the individual. This gives individuals the freedom to choose how their money is invested and how it is allocated.
Another important feature of an IPP is that it provides individuals with a guaranteed income in retirement. The funds contributed to the plan are used to purchase an annuity, which provides a stable income stream for the individual during their retirement years. This can provide individuals with peace of mind, knowing that they will have a reliable source of income in their golden years.
What is an Individual Pension Plan?
An individual pension plan (IPP) is a type of retirement savings plan that is specifically designed for self-employed individuals or business owners who want to maximize their pension contributions. It is a registered plan under the Canadian tax system and is subject to specific rules and regulations.
Unlike other types of registered pension plans, such as Registered Retirement Savings Plans (RRSPs) or Group Retirement Savings Plans (GRSPs), which are offered by employers, an IPP is an individualized plan that is established and administered by the individual or a corporation controlled by the individual.
Features of an Individual Pension Plan
Individual pension plans offer several unique features:
- Tax advantages: Contributions made to an IPP are tax-deductible, meaning that individuals can reduce their taxable income by the amount contributed to the plan.
- Higher contribution limits: IPPs have higher contribution limits compared to other retirement savings plans, allowing individuals to contribute more towards their retirement.
Advantages of an Individual Pension Plan
There are several advantages to having an individual pension plan:
- Greater control: With an IPP, individuals have greater control over their retirement savings and investment decisions compared to other retirement savings plans.
- Ability to customize: Individuals can customize their plan to suit their specific needs, including choosing their investments and setting the retirement age.
- Tax savings: Contributions made to an IPP are tax-deductible, resulting in immediate tax savings.
- Higher retirement income: The higher contribution limits of an IPP can lead to a higher retirement income compared to other retirement savings plans.
In summary, an individual pension plan is a retirement savings plan designed for self-employed individuals or business owners. It offers tax advantages, higher contribution limits, and greater control over retirement savings.
Benefits of Individual Pension Plans
Individual pension plans offer numerous advantages for individuals planning for retirement.
1. Flexibility: With an individual pension plan, you can have more control over your retirement savings compared to traditional pension plans. You can choose your investment options and adjust them according to your risk tolerance and financial goals.
2. Tax Benefits: Individual pension plans provide tax advantages. Contributions are tax-deductible, meaning you can save on income taxes each year. Additionally, the growth within the plan is tax-deferred until retirement, allowing your investments to grow faster.
3. Higher Contribution Limits: Individual pension plans have higher contribution limits compared to other retirement savings plans. This allows you to contribute more towards your retirement savings and potentially accumulate a larger nest egg.
4. Creditor Protection: Individual pension plans offer protection from creditors. In the event of bankruptcy or financial difficulties, your pension plan assets are generally shielded from creditors.
5. Estate Planning: Individual pension plans can be a valuable tool for estate planning. You can designate beneficiaries and ensure a smooth transfer of your pension assets to your loved ones upon your passing.
6. Retirement Income: Individual pension plans provide a reliable source of retirement income. You can customize the payout options to suit your needs, whether you prefer a fixed income stream or flexible withdrawals.
Overall, individual pension plans offer individuals a flexible and tax-efficient way to save for retirement while providing various benefits for estate planning and financial security.
Eligibility for Individual Pension Plans
An individual pension plan (IPP) in Canada is a retirement savings vehicle that is available to certain individuals who meet specific criteria.
To be eligible for an IPP, an individual must be an employee of a corporation that sponsors the plan. This means that self-employed individuals are not eligible for an IPP.
In addition to being an employee of a corporation, the individual must also be considered a “key employee” or an “incorporated employee” as defined by the Canada Revenue Agency (CRA).
A key employee is someone who owns at least 10% of the shares of the corporation or someone who is related to a 10% shareholder. An incorporated employee is someone who has incorporated their employment and the corporation meets certain criteria set by the CRA. In both cases, the individual must receive T4 income from the corporation.
It is important to note that the eligibility criteria for an IPP may vary depending on the specific details of the plan and the regulations set by the CRA. It is recommended that individuals consult with a tax professional or financial advisor to determine their eligibility for an IPP.
Contributions to Individual Pension Plans
Individual Pension Plans (IPPs) are a type of pension plan that is available to individuals who have significant income and are looking for a tax-advantaged way to save for retirement. These plans are designed to provide individuals with a steady income during their retirement years and offer certain tax benefits.
Contributions to an IPP are made by the individual and their employer. The maximum amount that can be contributed each year is determined by the individual’s pension adjustment. Contributions are tax-deductible for the individual and are not considered taxable income until they are withdrawn from the plan.
One advantage of an IPP is that the contribution limit is typically higher than that of a Registered Retirement Savings Plan (RRSP). This allows individuals with higher incomes to contribute more to their retirement savings and potentially receive larger tax deductions.
It is important to note that contributions to an IPP must be made within certain timeframes. The individual has until 60 days after the end of the calendar year to contribute to their IPP for that year. Failure to contribute within this timeframe may result in penalties and/or loss of tax benefits.
Tax Advantages of Individual Pension Plans
Individual Pension Plans (IPPs) offer several tax advantages to individuals in Canada. These tax advantages make them a popular choice for retirement savings.
Tax Deductible Contributions
One of the key tax advantages of an IPP is that the contributions made to the plan are tax deductible. This means that individuals can deduct the amount they contribute to their IPP from their taxable income, reducing the amount of income tax they have to pay. This can result in significant tax savings each year.
Tax-Sheltered Growth
Another tax advantage of an IPP is that the growth of the investments within the plan is tax-sheltered. This means that any capital gains, dividends, or interest earned within the plan are not subject to annual taxes. This allows the investments in the plan to grow more quickly, as they are not being eroded by taxes each year.
| Tax Advantages |
|---|
| Tax-deductible contributions |
| Tax-sheltered growth |
| Income splitting |
| Preferred tax treatment at retirement |
Income Splitting
IPPs also offer the advantage of income splitting. This means that individuals can split their pension income with their spouse or common-law partner, reducing their overall tax burden. This can be particularly beneficial for couples where one partner has a higher income than the other.
Preferred Tax Treatment at Retirement
When it comes time to retire and start receiving income from the IPP, the payments are treated as pension income. Pension income receives preferred tax treatment in Canada, with eligible amounts being eligible for a pension income tax credit. This can result in additional tax savings at retirement.
In conclusion, Individual Pension Plans offer several tax advantages in Canada. These include tax-deductible contributions, tax-sheltered growth, income splitting, and preferred tax treatment at retirement. These tax advantages make IPPs a valuable tool for retirement savings and tax planning.
Investment Options for Individual Pension Plans
Individual pension plans in Canada offer a range of investment options to help individuals grow their retirement savings. These investment options are designed to provide flexibility and diversification, allowing individuals to customize their investment strategy based on their risk tolerance and financial goals.
1. Stocks and Bonds:
One investment option for individual pension plans is investing in stocks and bonds. Stocks represent ownership in a company and have the potential for higher returns, but also carry higher risk. Bonds, on the other hand, are debt securities issued by corporations or governments, and offer a more stable and predictable income stream.
Individuals can choose to invest in individual stocks and bonds or opt for mutual funds or exchange-traded funds (ETFs) that provide exposure to a diversified portfolio of stocks and bonds.
2. Real Estate:
Investing in real estate is another option available for individual pension plans in Canada. Real estate investments can include residential properties, commercial properties, or real estate investment trusts (REITs). Real estate investments can provide a reliable income stream through rental payments and have the potential for capital appreciation over time.
Individuals can choose to invest directly in real estate properties or opt for real estate funds that pool investments from multiple individuals and invest in a diversified portfolio of properties.
It’s important to note that investing in real estate carries its own risks, including liquidity risk and the potential for fluctuations in property values and rental income.
3. Mutual Funds and ETFs:
Mutual funds and ETFs are investment options that pool money from multiple investors to invest in a diversified portfolio of securities. Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors. ETFs, on the other hand, are passively managed and aim to track the performance of a specific index or sector.
These investment options offer individuals the opportunity to invest in a wide range of asset classes, including stocks, bonds, and commodities, and provide instant diversification.
Conclusion:
Individual pension plans in Canada offer a variety of investment options to help individuals grow their retirement savings. Whether it’s stocks and bonds, real estate, or mutual funds and ETFs, individuals have the flexibility to choose investment options that align with their risk tolerance and financial goals.
It’s important for individuals to carefully consider their investment options and seek professional advice if needed to ensure they are making informed decisions that align with their long-term retirement objectives.
Vesting and Portability of Individual Pension Plans
When it comes to individual pension plans, vesting and portability are important considerations for plan participants. Vesting refers to the time it takes for an employee to become entitled to the employer’s contributions to their pension plan. Portability, on the other hand, refers to the ability of plan participants to take their pension benefits with them if they change jobs or leave the workforce.
Vesting
Vesting in an individual pension plan typically occurs over a period of time, with certain contributions becoming fully vested after a specified number of years. This means that if an employee leaves their job before the vesting period is complete, they may only be entitled to a portion of the employer’s contributions. The exact vesting schedule can vary depending on the specific plan and any applicable provincial or federal legislation.
Portability
Portability is an important feature of individual pension plans, as it allows plan participants to effectively transport their accrued pension benefits if they change employers or leave the workforce. This means that employees can maintain their pension savings and benefits even if they switch jobs, helping to ensure retirement security and continuity. The portability rules and options can vary depending on the plan and any applicable legislation.
| Benefits of Vesting and Portability | |
|---|---|
| Vesting | Portability |
| Ensures that employees receive the full benefits of their employer’s contributions after completing the vesting period | Allows plan participants to maintain their pension savings and benefits when changing jobs |
| Provides an incentive for employees to stay with their employer for the long term | Helps ensure retirement security and continuity for plan participants |
| Can help attract and retain employees | Offers flexibility and peace of mind for individuals |
Understanding the vesting and portability provisions of an individual pension plan is crucial for employees to make informed decisions about their retirement savings. It is important to review the specific terms of the plan and consult with a financial advisor or retirement specialist if necessary.
Withdrawals and Transfers from Individual Pension Plans
Individual Pension Plans (IPPs) in Canada are designed to provide retirement income for individuals. When it comes to withdrawals and transfers from IPPs, there are certain rules and regulations that need to be followed.
Withdrawals from an IPP can be made once an individual reaches the age of 55, which is considered the earliest age for retirement in Canada. However, the amount that can be withdrawn is subject to certain limits set by the Canada Revenue Agency (CRA).
It’s important to note that withdrawals from an IPP are considered taxable income and are subject to income tax. The amount of tax will depend on several factors, including the individual’s tax bracket and the amount withdrawn.
When it comes to transfers, individuals have the option to transfer their IPP to another retirement savings vehicle, such as a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF). This can be done in certain situations, such as when an individual changes employers or no longer qualifies for an IPP.
Transfers from an IPP to another retirement savings vehicle are subject to specific rules and regulations set by the CRA. It’s important to consult with a financial advisor or tax professional to ensure that all requirements are met.
In conclusion, withdrawals and transfers from Individual Pension Plans in Canada are subject to rules and regulations set by the CRA. It’s important for individuals to understand these rules and consult with a professional before making any decisions regarding their IPP.
How Individual Pension Plans are Regulated
Individual Pension Plans (IPPs) in Canada are regulated by various government bodies to ensure that they meet the necessary requirements and provide a secure retirement income for individuals.
The main regulatory body overseeing IPPs in Canada is the Office of the Superintendent of Financial Institutions (OSFI). This federal agency is responsible for supervising and regulating all federally registered pension plans, including IPPs. OSFI establishes guidelines and standards that IPPs must adhere to, such as funding requirements and investment rules.
In addition to OSFI, each province and territory in Canada has its own regulatory authority that oversees pension plans, including IPPs. These authorities may have specific rules and regulations that IPPs must follow, in addition to the federal guidelines. This ensures that IPPs are compliant with both federal and provincial/territorial laws.
IPPs also have to comply with the Income Tax Act, which sets out the tax rules and regulations for registered pension plans in Canada. The Canada Revenue Agency (CRA) is responsible for administering and enforcing these tax laws. IPP contributions and benefits must meet the tax rules outlined in the Income Tax Act to maintain their registered status and receive tax advantages.
To further protect individuals and ensure the integrity of IPPs, the Financial Services Regulatory Authority (FSRA) and similar provincial regulators play a role in monitoring and supervising pension plans. They review plan documents, financial statements, and actuarial reports to ensure compliance and solvency.
Overall, the regulation of individual pension plans in Canada involves a multi-faceted approach, with federal and provincial/territorial regulators working together to ensure these plans provide Canadians with a secure and reliable retirement income.
Differences between Individual Pension Plans and Registered Retirement Savings Plans
Individual Pension Plans (IPPs) and Registered Retirement Savings Plans (RRSPs) are two popular retirement savings options in Canada.
An Individual Pension Plan is a retirement savings vehicle that is available for self-employed individuals and owner-operators of small businesses. It offers a way to build a pension fund in a tax-efficient manner and provides retirement income in the form of a pension. On the other hand, a Registered Retirement Savings Plan is a personal savings plan that allows individuals to contribute a certain amount of their annual income to save for retirement.
Here are some key differences between IPPs and RRSPs:
| Individual Pension Plan (IPP) | Registered Retirement Savings Plan (RRSP) |
|---|---|
| Designed for self-employed individuals and owner-operators of small businesses | Available for all individuals with earned income |
| Requires the establishment of a pension trust | No trust is required |
| Allows for higher contribution limits than RRSPs | Contribution limits are based on annual income |
| Contributions are tax-deductible | Contributions are tax-deferred until withdrawal |
| Provides a defined benefit pension plan | Provides a defined contribution savings plan |
| Offers protection from creditors | Does not offer protection from creditors |
In conclusion, while both Individual Pension Plans and Registered Retirement Savings Plans offer a way to save for retirement, they have distinct features and eligibility criteria. It is important for individuals to consider their specific needs and circumstances before choosing the right retirement savings option.
Importance of Individual Pension Plans for Retirement Planning
Individual Pension Plans (IPPs) play a crucial role in retirement planning in Canada. These plans provide individuals with a reliable and secure source of income during their retirement years.
One of the key benefits of IPPs is that they offer individuals control over their retirement savings. Unlike other pension plans, such as employer-sponsored plans, an IPP allows individuals to make investment decisions based on their specific needs and risk tolerance. This flexibility can be especially beneficial for individuals who have unique investment goals or preferences.
Furthermore, IPPs offer individuals the opportunity to accumulate significant wealth over time. Contributions to an IPP are tax-deductible, which means that individuals can reduce their taxable income while simultaneously building their retirement savings. Additionally, the investment income and capital gains earned within an IPP are tax-sheltered until retirement, providing individuals with potential tax advantages.
Another advantage of IPPs is their ability to provide individuals with a predictable and stable income stream during retirement. Unlike other retirement savings vehicles that require individuals to manage their investments and potentially face market fluctuations, IPPs provide individuals with a defined benefit pension, which guarantees a fixed income based on factors such as years of service and salary history.
In addition to these benefits, IPPs also offer individuals the opportunity to leave a financial legacy for their loved ones. Upon the individual’s death, any remaining funds within the IPP can be passed on to designated beneficiaries, providing them with financial security and potential tax advantages.
In conclusion, Individual Pension Plans are an integral part of retirement planning in Canada. These plans offer individuals control over their retirement savings, the potential for significant wealth accumulation, a predictable and stable income stream in retirement, and the ability to leave a financial legacy. Considering these advantages, it is evident that IPPs are a valuable tool for individuals looking to secure their financial future.
Risks and Considerations of Individual Pension Plans
Individual Pension Plans (IPPs) in Canada provide individuals with a way to save for retirement in a tax-effective manner. However, there are risks and considerations that individuals should be aware of before participating in an IPP.
One of the risks of an IPP is that it is tied to the performance of the investments held within the plan. If the investments underperform or the market experiences a downturn, the value of the IPP may decrease, leading to a smaller retirement income.
Another consideration is the cost associated with setting up and maintaining an IPP. There are administrative fees and expenses that individuals need to factor into their overall retirement savings plan. It is important to carefully assess whether the potential benefits of an IPP outweigh the associated costs.
Additionally, an IPP may come with restrictions on withdrawing funds. Unlike Registered Retirement Savings Plans (RRSPs), which allow individuals to withdraw funds at any time (subject to taxation), IPPs typically have stricter rules governing the withdrawal of funds. This lack of flexibility can be a disadvantage for individuals who may unexpectedly need access to their retirement savings.
Furthermore, an IPP may not be suitable for individuals who have a variable income or who anticipate significant changes to their employment status. The contributions to an IPP are based on a percentage of earned income, and if income decreases, individuals may find it challenging to maintain the required contributions.
Finally, it is important to consider the long-term commitment associated with an IPP. Unlike other retirement savings vehicles, an IPP cannot be easily transferred or converted into other forms of retirement income. Therefore, individuals should carefully evaluate their retirement needs and goals before opting for an IPP.
Overall, while Individual Pension Plans offer tax advantages and retirement savings opportunities, individuals should carefully consider the risks and drawbacks before committing to this type of retirement savings plan in Canada.
Maximize Your Individual Pension Plan Benefits
If you have an individual pension plan (IPP) in Canada, it’s important to understand how you can maximize its benefits. Here are some key strategies to consider:
- Contribute the maximum amount: Make sure you contribute the maximum allowable amount to your IPP each year. This will help ensure you are taking full advantage of the tax benefits and potential growth opportunities.
- Review your investment options: Regularly review and assess the investment options available to you within your IPP. Consider diversifying your portfolio to minimize risk and maximize returns.
- Stay informed about tax changes: Keep yourself updated on any changes to tax laws and regulations that may impact your IPP. This will help you make informed decisions and take advantage of any new tax-saving opportunities.
- Explore income splitting: If you have a spouse or common-law partner, explore the option of income splitting through your IPP. This can help reduce your overall tax burden and increase your retirement income.
- Consider the pension income credit: When planning your retirement withdrawals from your IPP, consider the pension income credit. This credit can help reduce your taxable income and potentially lower your tax liabilities.
- Consult with a financial advisor: To fully maximize the benefits of your IPP, consider working with a financial advisor who specializes in retirement planning. They can help you develop a personalized strategy and provide guidance on how to make the most of your pension plan.
By following these strategies, you can maximize the benefits of your individual pension plan in Canada and ensure a more secure and comfortable retirement.
How to Set Up an Individual Pension Plan
Setting up an individual pension plan (IPP) in Canada is a straightforward process that offers individuals the opportunity to save for retirement while enjoying tax benefits. Below are the key steps to follow when setting up an IPP:
| Step 1: | Consult with a financial advisor or pension specialist |
| Step 2: | Determine eligibility |
| Step 3: | Design the plan |
| Step 4: | Develop an investment policy statement |
| Step 5: | Obtain regulatory approval |
| Step 6: | Fund the plan |
| Step 7: | Monitor and adjust |
It is important to consult with a financial advisor or pension specialist who is knowledgeable about IPPs and can guide you through the setup process. They can help determine your eligibility for an IPP and provide personalized advice based on your unique financial situation.
Once eligibility is established, you need to design the plan according to your retirement goals and risk tolerance. This includes determining the contribution levels, investment options, and retirement age. Developing an investment policy statement will help provide guidelines for managing and investing the plan’s assets.
After the plan is designed, you will need to obtain regulatory approval from the Canada Revenue Agency (CRA) and the pension regulator in your province. This involves submitting the necessary documents and meeting the specific requirements set by the regulators.
Once approved, you can start funding the plan. Contributions to an IPP are tax-deductible, up to certain limits, and can be made by both the individual and the employer. The funds contributed will grow tax-free until retirement, providing a secure income stream during your golden years.
Lastly, it is essential to regularly monitor and adjust your IPP as needed. Market conditions and personal circumstances may change over time, necessitating adjustments to the investment strategy or contribution levels. A periodic review with your financial advisor or pension specialist will ensure that your IPP remains on track to meet your retirement goals.
In conclusion, setting up an individual pension plan in Canada requires careful planning and consultation with experts in the field. By following the steps outlined above, you can establish an IPP that will help secure your financial future during retirement.
Frequently Asked Questions about Individual Pension Plans
What is an Individual Pension Plan (IPP) in Canada?
An Individual Pension Plan (IPP) is a registered retirement savings vehicle available to certain business owners and executives in Canada. It is designed to provide a tax-efficient way to save for retirement.
Who is eligible for an Individual Pension Plan?
In Canada, eligible individuals for an Individual Pension Plan (IPP) typically include business owners, incorporated professionals, and top executives of private corporations. The eligibility criteria may vary depending on the provincial regulations.
What are the advantages of having an Individual Pension Plan?
Having an Individual Pension Plan (IPP) offers several advantages, including:
- Increased contribution limits compared to other registered retirement savings vehicles
- Tax-deductible contributions
- Asset protection from creditors
- Flexible investment options
Can contributions to an Individual Pension Plan be withdrawn before retirement?
No, contributions made to an Individual Pension Plan (IPP) cannot be withdrawn before retirement. The funds are meant to be used for retirement income and cannot be accessed early without incurring penalties or tax consequences.
How is the income from an Individual Pension Plan taxed in Canada?
The income from an Individual Pension Plan (IPP) is taxed as regular income in Canada when it is received during retirement. The amount of tax payable depends on the individual’s income tax bracket at that time.
Note: Tax laws can change, so it’s always a good idea to consult with a financial advisor or tax professional for the most up-to-date information.
Q&A:
What is an Individual Pension Plan (IPP)?
An Individual Pension Plan (IPP) is a type of registered pension plan in Canada that is specifically designed for owners of small incorporated businesses or high-income earning individuals. It allows them to provide themselves with a retirement income through a tax-efficient savings vehicle.
Who is eligible for an Individual Pension Plan?
Eligibility for an Individual Pension Plan (IPP) depends on several factors, including your age, income, and employment status. Generally, IPPs are most suitable for individuals who are at least 40 years old and earning a high income. However, specific eligibility criteria can vary depending on the plan provider.
What are the advantages of having an Individual Pension Plan?
An Individual Pension Plan (IPP) offers several advantages, including higher contribution limits compared to other retirement savings options, potential tax savings, flexibility in investment choices, and the ability to transfer funds from existing retirement accounts. It also provides a predictable source of retirement income and the ability to customize the plan to meet individual needs.
Are there any disadvantages to having an Individual Pension Plan?
While an Individual Pension Plan (IPP) offers numerous benefits, there are some potential disadvantages to consider. These include the higher administrative costs associated with setting up and maintaining the plan, potential restrictions on access to funds before retirement, and the requirement to make regular contributions. Additionally, the investment performance of the plan can also impact the ultimate retirement income.
Can I transfer funds from an existing retirement account to an Individual Pension Plan?
Yes, it is possible to transfer funds from an existing retirement account, such as a Registered Retirement Savings Plan (RRSP) or a Registered Pension Plan (RPP), to an Individual Pension Plan (IPP). This can be advantageous for individuals looking to consolidate their retirement savings and take advantage of the higher contribution limits and tax benefits offered by an IPP. However, it is important to consult with a financial advisor to ensure the transfer is done correctly and in compliance with tax regulations.
What is an Individual Pension Plan in Canada?
An Individual Pension Plan (IPP) in Canada is a customized registered pension plan that allows individuals who are incorporated business owners to contribute towards their retirement savings. It provides the same benefits as a traditional pension plan but offers more flexibility and control over the investment decisions.
Who is eligible for an Individual Pension Plan in Canada?
Individuals who are incorporated business owners and have a significant amount of earned income are eligible for an Individual Pension Plan in Canada. The plan is designed primarily for high-income earners who want to maximize their retirement savings and take advantage of the tax benefits offered by the plan.
What are the advantages of an Individual Pension Plan in Canada?
An Individual Pension Plan in Canada offers several advantages. Firstly, it allows individuals to make larger tax-deductible contributions compared to other retirement savings vehicles. Secondly, it provides flexibility in investment options, allowing individuals to choose how their funds are invested. Lastly, it offers creditor protection, ensuring that the pension assets are protected even in the event of bankruptcy or legal action.
Are there any limitations to an Individual Pension Plan in Canada?
Yes, there are some limitations to an Individual Pension Plan in Canada. The maximum allowable contribution is based on an individual’s age and years of service, and there is a cap on the retirement benefits that can be received from the plan. Additionally, the plan must be funded by the corporation, which may pose cash flow challenges for some businesses.
Can individuals transfer funds from other retirement savings accounts to an Individual Pension Plan in Canada?
Yes, individuals can transfer funds from their existing retirement savings accounts, such as Registered Retirement Savings Plans (RRSPs) or Locked-in Retirement Accounts (LIRAs), to an Individual Pension Plan in Canada. This can help consolidate retirement savings and take advantage of the higher contribution limits and tax benefits offered by the IPP.