Toron Future Focus Program

Entrepreneurs owning small- to medium-sized enterprises (SMEs) face issues of financial security in retirement. Research indicates that many entrepreneurs are busy with their businesses and have not had time to plan for succession or retirement.

Through an IPP, we can help you build your retirement plan to ensure retirement income independent of the sale of your business.

↓ What is an IPP and why should entrepreneurs consider it?
↓ Do you qualify for an IPP?
↓ How does the Toron Future Focus Program work?
↓ Toron Future Focus Program Partners

What is an Individual Pension Plan (IPP) and why should entrepreneurs consider an IPP?

  • An IPP is a defined benefit pension plan for one or more people (the business owner and spouse, if applicable) sponsored and funded by the employer (the business owner’s corporation)
  • Through an IPP, an incorporated business owner can use tax-deductible corporate contributions to fund a personal pension plan, thereby providing a source of guaranteed income for retirement
  • Depending on age, maximum IPP contributions are well in excess of those allowed under RRSPs, resulting in far greater retirement income
  • Additionally, the business owner’s corporation can also purchase “Past Service” for eligible employees. Past service is defined as the ability to assume that the IPP was in effect from the date of incorporation (latest 1991) and to make catch-up contributions, which are deductible to the corporation

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Is an IPP for you?

You qualify for an IPP if you:

  • Have a bone fide employer–employee relationship (the candidate must receive T4 income from the employer sponsoring the plan)
  • Have combined spousal earnings of at least $90,000 per year
  • Are an owner/manager of at least 40 years of age
  • Are already able to maximize RRSP contributions

Note: The firm must be incorporated.

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The Toron Future Focus Program

The Toron Future Focus Program has been designed to create a lifetime of income on a tax-preferred basis. IPPs are available to SME business owners, qualifying Association members and Franchise owners.

The Toron Future Focus Program provides for the creation, implementation and ongoing administration for:

  • Individual Pension Plan — providing significantly greater tax benefits and retirement income than RRSPs
  • Additional Voluntary Account — facilitates RRSP transfers into the IPP. This account is not locked in so funds can be paid out under an RRIF
  • Health Spending Account — medical expenses can be paid on a pre-tax basis
  • Investment Portfolio — designed to meet the IPP investment mandate. Assets will be managed through one of three investment options with an asset mix corresponding to your risk profile: Global Equity, Global Balanced and Canadian Equity investments

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Toron Future Focus Program -- Partners

W.C. Kennedy & Associates and Wellknit Services are partners in the Toron Future Focus Program for entrepreneurs.

W.C. Kennedy & Associates Inc. is a well-established actuarial consulting firm with offices in Mississauga, Ontario. The firm provides first-class actuarial services at competitive rates. For more information, visit www.executiveretirementplan.ca

Wellknit Services sells and administers employer-sponsored group benefit programs that focus on employee health and productivity. Wellknit Services adds value by providing protection, choice, accountability and rewards. For more information, visit www.wellknit.ca ↑ top