IPP versus RRSP

An IPP (Individual Pension Plan) is a tool that can replace an RRSP (Registered Retirement Savings Account) for small business owners.  So which one is better to hold your investments in?

Why consider an IPP (Individual Pension Plan).

  • As you near retirement the contribution limit is greater than that of an RRSP
  • In some circumstance IPP’s behaves differently in your estate.
  • Can be used in different tax planning strategies (Accountant is recommended to discuss these, but can include under funding to devalue a business)


Why would you not want an IPP (Individual Pension Plan)

  • Annual fees are due to maintain IPP’s
  • Many more rules and restriction than an RRSP
  • A more complicated tool to understand.


If you are considering an IPP I would recommend talking to both an investment professional that understands this tool and an Accountant that can explain the tax benefits.  These can be a great tool if understood and used in the right planning situation.



This post has been kept general, to find out if an RRSP is right for you, and how to best use this tool to move forward you should discuss it with a professional.  Details can be found on the government of Canada website. This information is assumed correct, but is for information purposes only and it is up to the reader to verify it’s accuracy before acting on anything written on this site.

This website is focused on rules as they impact residence of British Columbia.  My business is focused on Greater Vancouver, Langley and Surrey and I am happy to discuss these options with people residing in this area.