IPP Frequently Asked Questions

What is an Individual Pension Plan (IPP)?
  • registered defined benefit pension plan
  • plan must be sponsored and funded by employer, although plan member may assist with funding (differs from RRSP, where no employer involvement required)
  • comprised of one plan member; however, spouse may be added if employed by same or associated employer

What if I have already made my current years RRSP contribution?

You must withdraw a portion of your RRSP contribution without penalty or withholding.

What if I have unused RRSP room at the end of the previous year?

This room may be used to increase IPP funding for pre-2015 employment years.

Can I make future RRSP contributions?

All future retirement savings will be made through the IPP.
Existing RRSP assets, however, will continue to grow on a tax-
deferred basis.

What happens if ability to contribute to the IPP is reduced?

Once the IPP is established, there is an ongoing obligation to make
contributions. However, in the event of cash flow difficulties
contributions may be suspended. When conditions improve,
contributions may be resumed. If necessary, the IPP may be
wound up at any time.