IPP Strategy for Business Owners: $1.58M Case Study Meet Antonio and Miranda Antonio and Miranda are both 40 years old. They have spent the last 15 years building a successful private business. Like many owner-managers, they own both an operating company and a holding company. Opco runs the active business. Holdco owns income-producing real estate, portfolio investments, and private loans. Over the years, both Antonio and Miranda have taken real T4 salaries from the business.

When you’re on the ice, the field, or the court, the focus is always on performance. But every professional athlete knows the reality: careers are short, paydays are big, and the “game of money” can be just as tough as the sport itself. That’s where a Retirement Compensation Arrangement (RCA) comes in—it’s like having a playbook designed to keep you winning long after the final whistle. What’s an RCA? Think of an RCA as your financial training camp. Instead of putting all you

1. Why look beyond the RRSP? Registered Retirement Savings Plans (RRSPs) have long been the default vehicle for entrepreneurs who pay themselves a salary, but their fixed annual dollar limit— $32,490 for 2025—can become restrictive once earnings rise. Two specialized, employer‑sponsored arrangements let you go further: Individual Pension Plan (IPP) – a defined‑benefit pension registered under the Income Tax Act, usually established for a single shareholder‑employee of a priva

Retirement Planning: HOOPP vs. IPP/RCA – Which is Right for You? Retirement planning is one of those big life decisions, like choosing the perfect ice cream flavor. But instead of chocolate or vanilla, you're picking between two heavyweights: the Healthcare of Ontario Pension Plan (HOOPP) and the Individual Pension Plan (IPP/RCA). Which one deserves a spot on your financial dessert plate? Let’s dive in. What is HOOPP? HOOPP is the tried‑and‑true, classic option—a defined bene

Introduction Individual Pension Plans (IPPs) and Retirement Compensation Arrangements (RCAs) often feel abstract until you see the arithmetic. Using one set of assumptions, the figures below compare a corporation that contributes to an IPP with a corporation that keeps the same pre‑tax dollars inside the company, pays the regular taxes, and invests the after‑tax cash in a passive portfolio. Assumptions used for both scenarios • Annual pre‑tax amount available: $100,000 • I

Let’s be honest: retirement planning can feel as thrilling as reading the fine print on a warranty. But if you’re an owner-manager dreaming of stress-free sunsets and cocktails (or whatever your retirement vibe is), it’s time to get excited. Two heavyweights are here to make your financial dreams come true: Individual Pension Plans (IPPs) and Retirement Compensation Arrangements (RCAs). These aren’t just boring tax tools—they’re your golden tickets to retirement success. Let’