Performance figures for each account are calculated using time weighted rate of returns on a daily basis. The Composite returns are calculated based on the asset-weighted monthly composite constituents based on beginning of month asset mix and include the reinvestment of all earnings as of the payment date. Composite returns are as follows:

John Nicola Answers Your Tax Questions: Spousal RRSP’s and IPP’s

Watch Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s Taxation Environment here.

In his webinar on November 2, 2021, CEO & Chairman, John Nicola, provided exclusive insight into Canada’s taxation environment and explained how to optimize your tax planning strategy in light of current regulations and took the time to answer viewer questions. Each week, we will publish his answers to your questions.


How do spousal Registered Retirement Savings Plan (RRSP) contributions affect one’s ability to set up an individual pension plan (IPP)? Would someone who has maximized their annual RRSP contribution limits be a good candidate for an IPP?


John’s Response:

Most people who apply want to create an IPP also want to be able to take advantage of the extra contribution room they can get by applying for what is called past service. In order to fund past service, one has to transfer RRSP assets, often in the hundreds of thousands of dollars, and that transfer has to be from one’s RRSP and not from a spousal account. So, a large spousal RRSP is likely to put limits on how much past service can be funded.

The answer to the second question is YES depending on age. For an IPP to make economic sense for most individuals, one should be over age 45 years old and have a reasonably long period of service as an employee (10 years or more ). There are exceptions to this, but these are good guidelines.


This material contains the current opinions of the author and such opinions are subject to change without notice. This material is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Nicola Wealth is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required provincial securities commissions.