Step

Party

Action

1

ADVISOR

Learn IPP Basics! Make use of our website's self-education tools, specifically the IPP FAQ. Consider attending one of our free seminars.

2

ADVISOR

Determine whether the employee and employer are good candidates for an IPP. If each answer to these questions (click here) is "yes" then an IPP is feasible - otherwise, the IPP is not recommended at this time.

3

ADVISOR

Gather data (date of birth and T4 earnings back to 1991) on the IPP prospect(s).
Your client can authorize you to become his/her representative with Canada Revenue Agency ("CRA") by completing FORM T1013 (Level 1 disclosure). You can then request the prospect's T4-earnings history from CRA.
Note: T4-earnings are to be from the IPP plan sponsor(s) only.

4

ADVISOR

Determine IPP suitability by getting a quote from Westcoast's  IPP On-Line Quoting System^©.  Each individual quotation is free, immediate and anonymous.

5

ADVISOR

If the quote shows significant advantage over the RRSP, set up a  meeting with the IPP prospect to discuss concept(s) – use the  quotation to close the sale.

6

ADVISOR

To obtain a quote for an IPP prospect younger than age 40, contact us via info@WAInc.ca

7

ADVISOR

If you require further information, please search our website for education materials. Then, if necessary, contact us via info@WAInc.ca

8

ADVISOR

If prospect is interested in proceeding, gather actual company and member information for implementation.  Preview of Data Requirements.
Prospect and Advisor are responsible for determining and executing the IPP's funding arrangement.

a) If the IPP’s funding arrangement is an insurance company’s deposit administration contract, contact the insurance company to set up the contract.

b) If the IPP’s funding arrangement utilizes a corporate trust, contact the corporate trustee to set up the trust.

c) If the IPP’s funding arrangement utilizes individual trustees, then obtain the data required for each  individual trustee.  Westcoast provides an individual trust agreement as part of the Implementation  Package.  Please note that one trustee must be independent of the company sponsoring the plan. Being independent means the individual is not a shareholder/partner/proprietor or employee of the company.

9

ADVISOR

Contact Westcoast to request an IPP Implementation Form.

10

Westcoast

Email data confirmation and invoice for the first year annual fee to the ADVISOR.

11

ADVISOR

Return signed data confirmation and payment of the first year annual fee.

12

Westcoast

Prepare and mail Implementation Package to the ADVISOR.

13

ADVISOR

Meet with CLIENT to sign required items in Implementation Package and, if applicable, CLIENT to include cheque payment for the federal / provincial registration fee.

14

ADVISOR

Forward signed items in Implementation Package, and if applicable, cheque payment for the federal / provincial registration fee to Westcoast.

15

ADVISOR

Check with your investment planner or firm regarding setting up an IPP account (some require the CRA 7-digit registration number to set up the account, some don’t); if they can do it, proceed to set up the IPP account.

16

Westcoast

Submit Application for Registration Package to CRA / Regulator and send a copy to the ADVISOR.

17

CRA

Provide a Deemed Registration Letter to the CLIENT / Westcoast within 4 to 6 weeks. Click here for sample Deemed Registration Letter.

18

Westcoast

Provide the ADVISOR with Deemed Registration Letter via email.

19

ADVISOR

Advise CLIENT that COMPANY contributions for past service and current service can now be made.

20

CRA

Provide Official Registration Letter to CLIENT / Westcoast within 2 to 4 months after deemed registration letter. Click here for sample Official Registration Letter. Note that this letter mentions forms T3P and T244 which must be filed with CRA each year. Westcoast, as part of the IPP Service Package, completes and files these forms each year.

21

Westcoast

Provide ADVISOR with official registration letter via email.

22

ADVISOR

Advise CLIENT that member's QUALIFYING TRANSFER can be made from member's RRSP or pension plan to the IPP.  The QUALIFYING TRANSFER must be completed within 90 days of the date that official registration was granted by CRA. Use Form T2033 to effect the transfer.

23

CRA

Provide official letter to CLIENT / Westcoast approving contribution amounts from Westcoast 's actuarial valuation report.  Letter is used to document IPP deductions for corporate tax return. Click here for sample Approval Letter.

24

CRA

Provide official letter to CLIENT / Westcoast certifying Past Service Pension Adjustment (only if PSPA certification requested via form T1004) within 2 months of request. Click here for sample PSPA Certification Letter.