Fact Sheet - PPP Contributions
Contributions made to the INTEGRIS Personal Pension Plan (PPP) as a Registered Pension Plan (RPP) and those made to Registered Retirement Savings Plans (RRSPs) are subject to the maximum limits imposed by the Canada Revenue Agency.
The information below sets out the 2015 contribution limits and Maximum Pensionable Salary information applicable to the Defined Benefit (DB) and Defined Contribution (DC) components of the PPP which are in turn compared to the RRSP contribution limits applicable to individuals who remain in RRSPs. Further, individuals who establish their own PPPs will have the benefit of being able to make an additional contribution to their RRSP. Below is a summary of these PPP and additional RRSP contribution amounts.
2015:
- Maximum Pensionable Salary (MPS) = $140,944.44
- DB Limit = $ 40,242.75 (age dependent) Example: $ 30,938.81 (at age 50)
- DC Limit = $25,370
- RRSP Limit = $24, 930
- INTEGRIS DC -‐ RRSP Gap = $440
- INTEGRIS DB -‐ Additional RRSP = $600
Fact Sheet - Personal Service Businesses
Normally, a private corporation in Ontario earning less than $500,000 will be taxed favorably under the Small Business Deduction rate of 15.5%. This rate compares well against the top marginal tax rates paid by individuals receiving salaries and bonuses.
Fact Sheet - Terminal Funding
When a business owner is selling the business or about to retire, transferring assets can trigger tax consequences. Personal Pension Plans (PPPs) do offer a retiring plan member with a one-‐time opportunity to upgrade the basic pension promised under the plan with additional benefits. The most common ancillary benefits include: