PENSION PLANS: An Overview for Self-Employed Business Owners in Canada (RRSP, IPP, MEPP)

[@BreakingBadDebt]

𝗧𝗼𝗽𝗶𝗰𝘀 𝗖𝗼𝘃𝗲𝗿𝗲𝗱: 0:00 - Intro 0:05 - Incorporation vs Not Incorporated Pension Options 3:17 - Pension Taxation 5:04 - IPP vs MEPP 10:00 - Individual Pension Plan Basics 11:40 - Comparing RRSP, IPP & MEPP 14:55 - Which pension plan to choose? 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀: 1. Pension Basics for Self-Employed Business Owners: www.looniedoctor.ca/2023/07/14/pension-self-employed-2/

[@ovidiustredie4014]

Dr. Steph, kudos for your continuing collaboration with Dr. Soth. and for your persistent efforts in educating at all levels the Canadian medical community about their finances!

[@BreakingBadDebt]

Thanks! Glad you've found it helpful!

[@a004]

Okay so IPP contribution increases over time, it takes more to support the planned payouts. But dont physicians generally earn less as they age? So isnt there a risk of requiring higher contributions in lower earning years? What happens if you cant make the payments?

[@BreakingBadDebt]

In this case, that's where the actuarial every 3 years becomes relevant. The contribution room determined by the actuary is based on the IPP holder's age, T4 earnings etc. and drops off after age 65 (see this article for the contribution limits: greenardgroup.com/advantages-and-considerations-of-the-individual-pension-plan-ipp/) If you can't make the payments, it depends on the province you're in, only ON and SK have mandatory contributions - if you can't fund it, benefits may be reduced (For more info: www.advisor.ca/industry-news/industry/three-myths-about-ipps/)