Host Colleen O'Connell-Campbell breaks down the basics of individual pension plans (IPPs) for Ontario incorporated business owners and professionals. She explains what an IPP is, who it fits best, and why it can be a powerful tool for turning corporate success into predictable personal retirement income as part of a cash rich exit strategy.

Episode overview

If you are incorporated in Ontario, this is a practical primer on how an IPP works as a defined benefit pension plan set up by your corporation. Colleen covers why IPP contribution room can outpace RRSP room after age 40, how contributions are generally tax deductible to the corporation, and how IPP planning supports personal income clarity after a sale or as part of succession planning.

What you will learn

What an IPP is, in plain english, and how an actuary sets the funding math under Canadian rules

Why IPPs can allow bigger deductible contributions as you get older, especially after age 40

How IPP contributions move value from corporation to personal income, in a structured way

The common fit profile (Ontario corporation, T4 income, age 40–71, profitable business that can fund contributions)

How IPP funding can include current service, past service, make-up contributions, and terminal funding near retirement What your options can be at retirement or if you sell (start pension income, commute value, or annuitize)

The tradeoffs: IPPs are not "cash jars," and they come with cost, complexity, and an ongoing contribution commitment

Key highlights

Why IPPs show up in exit planning

Colleen frames IPP planning as part of the "personal income clarity" that founders want after an exit, while still interacting with tax strategy and transferable business value decisions (including how you pay yourself).

Governance and guardrails

An IPP sits inside a trust structure with investment rules and periodic actuarial valuations, adding oversight designed to keep the pension on track.

Family and legacy considerations

Colleen notes you can design a multi-member IPP that includes a spouse and adult children who actually work in the business and receive t4 income, with survivorship dynamics that can support intergenerational planning.

Connect with Colleen O'Connell-Campbell on LinkedIn. Book a one-on-one wealth gap analysis with Colleen to discuss whether an IPP fits your exit timeline and plan.

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The Cash Rich Exit Podcast is brought to you by O'Connell-Campbell Wealth Management at RBC Dominion Securities.

All opinions expressed by the host, Colleen O'Connell-Campbell, and podcast guests are solely their own opinions and do not reflect the opinion of RBC Dominion Securities.

This podcast is for informational purposes only before taking any action based on information in this podcast you should consult with a qualified professional.

Colleen O'Connell-Campbell is a Wealth Advisor at RBC Dominion Securities, a member of the Canadian Investor Protection Fund.