Question 1

What is an Individual Pension Plan (IPP) and why is it superior to an RRSP for many incorporated business owners?

Accepted Answer

An IPP is a defined benefit pension plan established for a business owner or incorporated executive. Contributions are made by the corporation and are fully tax-deductible to the business. For owners over age 40 with T4 income, the IPP allows significantly higher annual contributions than an RRSP — with accumulated assets that are creditor-protected and benefit from actuarial top-up contributions as the owner ages.
→ Explore business owner wealth management strategies

Question 2

How can I use the Capital Dividend Account (CDA) to remove money from my corporation tax-free?

Accepted Answer

When your corporation has a positive CDA balance — generated by the non-taxable half of capital gains, life insurance proceeds, or other qualifying receipts — it can pay shareholders a tax-free capital dividend. This allows business owners to extract corporate wealth to their personal hands without triggering personal income tax. It is a frequently overlooked tax planning opportunity that Sunil — with his CPA (US) accounting background — actively identifies for incorporated clients.
→ Book a business owner tax strategy consultation

Question 3

Are my corporate investments protected from business creditors?

Accepted Answer

Investments held in an operating company are generally not protected from its creditors. With appropriate planning — such as holding investments in a separate holding company, or within personal registered accounts (RRSP, TFSA, IPP) — business owners can significantly reduce creditor exposure. Sunil coordinates this planning with your accountant or corporate lawyer to structure assets appropriately for clients in Ontario and British Columbia.

Question 4

What retirement planning tools go beyond the RRSP for incorporated professionals?

Accepted Answer

Beyond RRSP and TFSA, incorporated owners can use: an IPP (Individual Pension Plan); a Retirement Compensation Arrangement (RCA); corporate-owned life insurance (tax-sheltered accumulation inside the corporation); retained earnings invested within a holding company; and the Capital Dividend Account for tax-free wealth extraction. The optimal combination depends on your corporate income, personal income needs, estate objectives, and province.
→ Book a consultation to review your corporate retirement strategy

Question 5

How does Sunil's CPA (US) accounting background add value for business owners and professionals?

Accepted Answer

Sunil's accounting expertise enables him to read corporate financial statements, understand retained earnings and tax structures, and identify planning opportunities at the intersection of investment management and corporate tax — areas where most investment-only advisors lack depth. This makes for stronger collaboration with your accountant or tax lawyer, and investment decisions made with full awareness of their tax implications in Ontario and British Columbia.
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→ Learn about Sunil's background and credentials

Business Owner & Professional

Individual Pension Plan (IPP)

Tips for Financial Success

Own a Business? You're in Great Company!

With a million small businesses operating coast-to-coast with less than 100 employees, your venture is part of a thriving community.

Ensure a successful retirement for your business by setting up a well-designed retirement plan today.

Is your private corporation taking
Advantages of the Capital Dividend
Account?

Are your assets protected from creditors?

Frequently asked questions

What is an Individual Pension Plan (IPP) and why is it superior to an RRSP for many incorporated business owners?

How can I use the Capital Dividend Account (CDA) to remove money from my corporation tax-free?

Are my corporate investments protected from business creditors?

What retirement planning tools go beyond the RRSP for incorporated professionals?

How does Sunil's CPA (US) accounting background add value for business owners and professionals?

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Business Owner & Professional

Individual Pension Plan (IPP)

Tips for Financial Success

Own a Business? You're in Great Company! With a million small businesses operating coast-to-coast with less than 100 employees, your venture is part of a thriving community. Ensure a successful retirement for your business by setting up a well-designed retirement plan today.

Is your private corporation taking Advantages of the Capital Dividend Account?

Are your assets protected from creditors?

Frequently asked questions

What is an Individual Pension Plan (IPP) and why is it superior to an RRSP for many incorporated business owners?

How can I use the Capital Dividend Account (CDA) to remove money from my corporation tax-free?

Are my corporate investments protected from business creditors?

What retirement planning tools go beyond the RRSP for incorporated professionals?

How does Sunil's CPA (US) accounting background add value for business owners and professionals?

Insightful Videos

What's the best way to create a workplace mental health strategy?

How does the RESP work?

An introduction to mutual funds

WTF Is an ETF?

Impact of withdrawals – Canada Life

Empire Life Class Plus 3.0 RRSP

Tax benefits with an RRSP – Canada Life

What is an RRSP?

Own a Business? You're in Great Company!

With a million small businesses operating coast-to-coast with less than 100 employees, your venture is part of a thriving community.

Ensure a successful retirement for your business by setting up a well-designed retirement plan today.

Is your private corporation taking
Advantages of the Capital Dividend
Account?