Increasing your retirement income with an Individual Pension Plan (IPP)

An Individual Pension Plan (IPP) is a defined benefit pension plan that must conform to the Income Tax Act (ITA) as well as the requirements of the Canada Revenue Agency (CRA), and is typically established by a company for a single person. By providing the maximum benefits permitted under the Income Tax Act, an IPP generally allows higher tax-deductible contribution amounts than those permitted under an RRSP. For individuals who wish to maintain their pre-retirement lifestyle when retired, IPPs are an effective way to accumulate tax-sheltered funds.

Salary versus dividend income

The remuneration process for the owner-manager

The type of remuneration, whether it be salary or dividends, that an owner-manager decides to draw from their business will have an impact on both the owner-manager and their corporation. This article discusses the tax implications of receiving a salary versus dividends as well as some non-tax considerations that are of importance when deciding which form of remuneration you, as an owner-manager, should take.

Withdrawing surplus cash from a corporation

As a business owner, you may have surplus cash accumulating in your corporation. Is there a business need for the cash? Or do you need the funds personally and wish to withdraw them from your corporation? What is the most tax-efficient way of withdrawing funds? This article discusses various methods of withdrawing cash from your corporation as well as the tax issues and benefits that might apply with each method.