Enhance your path to
financial security
Secure you and your family's future
The Dentist Pension Plan (DPP) is a tailored defined benefit pension plan for incorporated Canadian dentists.
Not only will contributions to your DPP boost your retirement savings, but they are also tax-deductible for your corporation. Like an RRSP, the assets in your DPP grow tax-free and are only taxed upon withdrawal.
- Decrease personal and corporate taxes
- Boost your net worth
- Use tax refunds to help pay for the pension
The DPP advantage
With the Dentist Pension Plan (DPP), you can contribute more towards retirement than if you relied on other registered plans like RRSPs or TFSAs. These larger contributions compound tax-free over time, resulting in more money for you and your family, increasing your lifestyle or ability to give.
Age
RSP Contribution
DPP Contribution
DPP Advantage
Other Advantages
Reduce passive income inside your corporation
Assets within the pension are not considered passive assets within your corporation, which helps maintain your corporation’s access to the small business deduction (small business tax rate).
Tax deductible company contributions for prior years (past service)
A DPP typically allows dental corporations to contribute for years of service before the plan’s set-up going back to 1991. This past service often provides the corporation with a large tax deduction at plan setup.
All costs are tax-deductible to your corporation
All costs associated with the pension are tax-deductible to your corporation. This includes any investment management fees (another advantage over RRSPs).
Creditor protection
Assets within the pension are creditor protected. Your assets are safe from lawsuits, collections, or other judicial proceedings.
Increase corporate and personal tax savings
Large contributions like terminal funding and past service provide significant corporate tax savings. Unlike RRSPs, pension income can be split before age 65, reducing personal taxes in retirement.
Potential to pass wealth to the next generation tax-free
With RRSPs, all assets become taxable upon the surviving spouse’s death. With a DPP, you may be able to transfer the assets to your children without triggering taxes on capital gains or probate fees if the eligibility conditions are met.
Case Study
- $85,800 in immediate past service funding (tax-deductible to the corporation)
- Up to $803,900 more in tax-deductible contribution room over working years
- The DPP can accumulate up to $2,358,400 more assets as compared to an RRSP
- $314,800 in immediate past service funding (tax-deductible to the corporation)
- Up to $405,200 more in tax-deductible contribution room over working years
- The DPP can accumulate up to $1,802,000 more assets as compared to an RRSP
Pricing plans designed for your clinic
DPP
- Evidence-based investment management
- Fiduciary oversight
- Creditor protection
- Ability to add family members
- Intergenerational wealth transfer
- All fees are tax-deductible
- Defined benefit pension
DPP Flex
- Evidence-based investment management
- Fiduciary oversight
- Creditor protection
- Ability to add family members
- Intergenerational wealth transfer
- All fees are tax-deductible
- Defined benefit & defined contribution pension
- Flexible contributions
Experience Freedom
Experience Freedom
Experience Freedom
Experience Freedom
Experience Freedom
Experience Freedom
Experience Freedom
Experience Freedom
Experience Freedom
Experience Freedom
Invest Based on Science
The Dentist Pension Plan (DPP) uses an evidence-based approach to investing that focuses on diversification and discipline and minimizes expenses and taxes.
The goal is to provide a successful investment experience by putting financial science to work for dentists across Canada.
Grounded in economic theory and backed by decades of empirical research, the DPPs investment approach gives Canadian dentists the best chance at reaching their financial goals.