As a business owner, professional or an employee of a private corporation, you may not be part of a registered pension plan. Instead, you may have set up an RRSP for your retirement savings. An IPP can be thought of as a replacement for your RRSP. Similar
to an RRSP, room is earned if you earn employment income from the corporation and funds in the IPP grow on a tax-deferred basis.
An IPP is designed to provide asset diversification, increased retirement savings when compared to a registered retirement savings plan (RRSP), tax deferral opportunities and possibly creditor protection.
This article discusses the key concepts associated with IPPs.