Individual Pension Plan (IPP)
KNOWLEDGE EXPECTED OF: CFP® Professionals Only
- Define an Individual Pension Plan.
- Explain how each of the factors may impact the suitability of establishing an Individual Pension Plan, such as:
- Current contributions to a Registered Retirement Savings Plan
- Opportunity for past service contributions
- Available cash flow
- Credit protection requirements
- Evaluate how each of the factors may impact the suitability of establishing an Individual Pension Plan.
- Explain the costs and responsibilities associated with setting up and maintaining an Individual Pension Plan, such as:
- Triennial actuarial assessments
- Actuarial costs
- Accounting costs
- CRA reporting
- Plan administration/investment management costs
- Identify when the first prescribed annual minimum withdrawal amount from an Individual Pension Plan must start.
- Identify factors used to calculate the prescribed annual minimum withdrawal amount from an Individual Pension Plan.
- Explain the tax impact of an Individual Pension Plan.
- Benefits received by plan member
- Explain the treatment of an Individual Pension Plan upon death.
- For the Individual Pension Plan member
- For the Individual Pension Plan member’s spouse
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