Comments on: The Individual Pension Plan (IPP) – Convert your RRSP to a Defined Benefit Pension Plan http://wheredoesallmymoneygo.com/the-individual-pension-plan-ipp-convert-your-rrsp-to-a-defined-benefit-pension-plan/ A personal finance blog written by Preet Banerjee Sat, 11 Feb 2012 16:22:10 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Preet http://wheredoesallmymoneygo.com/the-individual-pension-plan-ipp-convert-your-rrsp-to-a-defined-benefit-pension-plan/#comment-153 Preet Tue, 20 Nov 2007 22:14:10 +0000 http://symbiantcapital.com/2007/11/20/the-individual-pension-plan-ipp-convert-your-rrsp-to-a-defined-benefit-pension-plan/#comment-153 <p>Thanks for the additional insight - you are right, I made it sound like it was very straight forward to set up - but Leslie is right, it can be an undertaking in some situations.</p><p>Thanks for the link to Canadian Western Trust - I will check them out! :)<br/></p> Thanks for the additional insight – you are right, I made it sound like it was very straight forward to set up – but Leslie is right, it can be an undertaking in some situations.

Thanks for the link to Canadian Western Trust – I will check them out! :)

]]> By: Leslie http://wheredoesallmymoneygo.com/the-individual-pension-plan-ipp-convert-your-rrsp-to-a-defined-benefit-pension-plan/#comment-152 Leslie Tue, 20 Nov 2007 21:54:29 +0000 http://symbiantcapital.com/2007/11/20/the-individual-pension-plan-ipp-convert-your-rrsp-to-a-defined-benefit-pension-plan/#comment-152 <p>To say there are administrative hurdles to setting up an IPP is an understatement. This is a very good alternative to the basic RRSP for qualified individuals, and he/she should be prepared to be patient as the process to set one up is time consuming and the red tape can be exasperating--anything where the CRA is involved! Throughout the life of the plan there are many parties involved including the actuary, an independent trustee, and investment advisor (who may also be the custodian of the funds). Another actuary to add to Preet's list is <a href="http://www.cwt.ca" rel="nofollow">Canadian Western Trust</a> (Disclaimer: I have no beneficial interest in this company but have dealt with them professionally).</p> To say there are administrative hurdles to setting up an IPP is an understatement. This is a very good alternative to the basic RRSP for qualified individuals, and he/she should be prepared to be patient as the process to set one up is time consuming and the red tape can be exasperating–anything where the CRA is involved! Throughout the life of the plan there are many parties involved including the actuary, an independent trustee, and investment advisor (who may also be the custodian of the funds). Another actuary to add to Preet’s list is Canadian Western Trust (Disclaimer: I have no beneficial interest in this company but have dealt with them professionally).

]]> By: Preet http://wheredoesallmymoneygo.com/the-individual-pension-plan-ipp-convert-your-rrsp-to-a-defined-benefit-pension-plan/#comment-151 Preet Tue, 20 Nov 2007 21:21:36 +0000 http://symbiantcapital.com/2007/11/20/the-individual-pension-plan-ipp-convert-your-rrsp-to-a-defined-benefit-pension-plan/#comment-151 <p>Hi MDJ, technically you need to either be a highly paid employee, or be a "Connected Person".</p><p>You need to be drawing T4 income from the plan sponsor - so if you owned 10% of Royal Bank but didn't work there, you would not qualify for an IPP.</p><p>If you worked for Royal Bank and they agreed to sponsor the plan, you could setup an IPP without owning 10% of the company if you qualified as a "highly paid employee".</p> Hi MDJ, technically you need to either be a highly paid employee, or be a "Connected Person".

You need to be drawing T4 income from the plan sponsor – so if you owned 10% of Royal Bank but didn’t work there, you would not qualify for an IPP.

If you worked for Royal Bank and they agreed to sponsor the plan, you could setup an IPP without owning 10% of the company if you qualified as a "highly paid employee".

]]> By: MillionDollarJourney http://wheredoesallmymoneygo.com/the-individual-pension-plan-ipp-convert-your-rrsp-to-a-defined-benefit-pension-plan/#comment-150 MillionDollarJourney Tue, 20 Nov 2007 20:02:21 +0000 http://symbiantcapital.com/2007/11/20/the-individual-pension-plan-ipp-convert-your-rrsp-to-a-defined-benefit-pension-plan/#comment-150 <p>Preet, thanks for the great article. I had no idea that individuals could set up a defined benefit plan for themselves.</p><p>One of the criteria was that you must own more than 10% of a company. Can this be any company?</p> Preet, thanks for the great article. I had no idea that individuals could set up a defined benefit plan for themselves.

One of the criteria was that you must own more than 10% of a company. Can this be any company?

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