As the calendar year end is approaching, we wanted to advise you on some important dates regarding the set up and registration of personal pension plans (PPP®
s) for 2018.
To ensure that PPP®
s are registered with a January 1st, 2018 retroactive effective date, we would need to receive completed applications, supporting documents and first year fee payment by Oct 24th, 2018. This date allows us to meet all actuarial and compliance deadlines for the registration of the PPP®
with CRA and other provincial regulatory bodies.
Should you wish to have your clients' PPP®
s registered for the 2018 calendar year, we encourage you to contact us at [email protected]
to learn more about the requirements and to get started on the process as soon as possible. NOTE: If you are unable to meet the Oct 24th, 2018 submission deadline, we can register plans with a Jan 1, 2019 registration date and use 2018 as a year of past service. (After October 24th, a complete package (with fees) that is submitted will only receive expedited service if the following conditions are also met: (a) approval from INTEGRIS CEO is obtained in writing and (b) a special late filing surcharge of $500 plus HST is paid at the time approval is sought. This special service should only be used in extremely time-sensitive situations beyond the control of the financial advisor and INTEGRIS cannot guarantee that a January 1, 2018 effective date will be provided by the Canada Revenue Agency.)
We also remind you that past service does not always need to be recognized at the time of plan set up. Where it makes sense to recognize past service at a later time, obtaining plan registration can be accelerated by only recognizing current service. In that case, the collection of support documents like historical T4 slips, Notice of Assessment etc. is not required.
It is important to remind clients to forgo any RRSP contributions in the year that their PPP®
is being established. Any available carried forward RRSP room will be communicated by the CRA once the plan is registered and catch up contributions can be made safely at that time.