| Funding Solutions | PENSIONPlus™ | |
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| | PENSION Plus™ - Insurance Funding for RCAs |  |
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| | | The Situation: |
| | Are you an owner or key employee of a business? Have you maximized your RRSP contributions? Are you concerned that your RRSP’s will not provide an adequate pension? Are you looking for a 100% tax deductible solution for your pension needs? |
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| | | The Solution: | |
| | | The PENSIONWrap™ 'wraps’ an Retirement Compensation Arrangement (RCA) around the RRSP, MPPP, IPP and/or other registered pension plans to fund the difference between an appropriate pension and income from registered pension. For the same cost as funding a conventional RCA, RCFs specially configured PENSIONPlus™ provides unreduced spousal benefits at the same cost of funding primary benefits and/or pre-retirement death benefits, a corporate trustee at reduced rates and, eliminates the tax concerns associated with using Split Dollar or Shared Ownership Arrangements with RCAs. RCAs are defined under subsection 248(1) of the Income Tax Act, which allows 100 per cent tax-deductible corporate dollars to be deposited into an RCA, on behalf of the private business owner and/or key employee. No tax is paid by the owner/employee until benefits are received at retirement. An MPPPWrap™ & IPPWrap™ are also available to wrap around Money Purchase Pension Plans and/or Individual Pension Plans. | |
| | | This material is for information purposes only and should not be construed as legal or tax advice. Every effort has been made to ensure its accuracy, but errors and omissions are possible. Individual circumstances may vary and specific legal and tax advice is recommended. This strategy is based on current tax legislation. Future tax changes and market conditions may affect this program | |
| | | Related Resources: | |
| | | Case Study: Part 1 & Part 2 | Brochures | Presentations | The PENSIONPlus™ History | |
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