Ever been hip checked? Wakes you up, doesn’t it? (For those who have never had the experience, ask someone to give you one. You’ll quickly understand what I mean).
We’d like to wake up all private business owners, all private practices, accountants and tax lawyers.
Pretty much anyone that either:
This wake-up call is brought to you by Canadian Pension Legislation, and is registered under the Income Tax Act. Two key dates:
1991 – Income Tax Act registers pension plans for individuals. Namely, the Individual Pension Plan. (IPP)
2014 – The Personal Pension Plan (PPP®) becomes offered across Canada
Some of you may say to yourselves: “this isn’t news”, “I’ve heard of these pension plans for individuals”. And there were changes made by the Fed’s back in the mid- 90s so they ended up not being all that they were supposed to be cracked up to be.
(That change was the Feds freezing indexation of limits applying to pension plans. HOWEVER the govn’t. has recommenced indexing retirement limits, meaning the IPP pension provided has increased. Hooray! And in turn tax deductible contributions have increased. Double Hooray!!)
So, respectfully, everyone should know these basic tax facts by now:
Just ask your accountant! They’ve been scrambling to come up with the best strategies to aid their private owner clients for the 2018 tax season and forward.
The Federal Finance Minister, Bill Morneau, really took a slap shot at the tax planning of private business and was successful at hitting them square between the eyes!
So what does all this have to do with PPPs®?
Simple — these pension plans “built” specifically for incorporated private business owners or private practices can be the answer to many of the “priorities” outlined above as strategies to help business owners get their “peace” back in regards to:
So, what to do?
Put your skates on. Take these pension plans for a test run, no charge. Run your own numbers.
Talk to us. Like anything else these plans can run deep with many other benefits and strategies not listed here today.
Everyone that is an incorporated private business owner or professional should have a look at these. That includes accountants and tax lawyers.
The pension plans for business individuals are truly a hip check experience. Don’t miss out — they are “that effective” in the tax and savings environment we are in today.
Dawnyca Cristello, CFP
Business Development & Service, Partner MacDonald MGMT.
Tax Free Exits for Business Owners 416-930-2875
In collaboration with INTEGRIS Pension Management Corp. and Industrial Alliance Professional Services.