What are the minimum IPP funding requirements?
The Qualifying Transfer should be satisfied within 90 days of the Plan being granted formal registration status by CRA. The Qualifying Transfer can be completed by using Income Tax Form T2033. Company minimum funding requirements depend on the province in which the IPP is registered. British Columbia (BC) & Manitoba (MB) provincial pension legislation exempts IPPs from registration and minimum funding requirements. Thus, the Company’s minimum contribution for all IPPs is $0. The following rules would apply to contributions not made: If the Company can’t make a contribution in a particular calendar year then the Company will not have a tax-deductible IPP contribution for that calendar year. If the plan is for a Connected Person or Highly-paid Employee, there is no legal obligation on the part of the Company to make any minimum amount of contribution. The ‘missed’ contribution may be made up and deducted in the following calendar year(s) with interest (by contrast, unused RRSP room is ca
