Taking out an individual pension plan (IPP).

If you carry out your self-employed activity within the context of a partnership company, you can make contributions to a pension fund via a group insurance policy or an Individual Pension Plan (IPP).

INDIVIDUAL PENSION PLAN (IPP)

Belongs to the 'life insurance' category.The contract is entered into by a company in the name of one of its managers, for the benefit of the company or the manager.

The intention is to provide the company with financial support if a manager is lost (due to retirement or death), or to transfer an amount to the manager (or his/her inheritors) in the event of death or retirement. 

The self-employed individual can combine an IPP with a Supplementary Pension.  If the "80% rule" has been met:  the total capital (supplementary pension, IPP and group insurance), translated into yearly interest, may amount to no more than 80% of the previous year's gross annual income for the person in question.  

GROUP INSURANCE 

Group insurance is always taken out for a group of people (in contrast with the company directors' insurance). The employer takes out the insurance, with the beneficiaries being the members of the group, and not the company.  

Would you like to know more? Contact Partena Compass today

Would you, as a company director, like to optimize your supplementary pension? Take out an individual pension plan: a kind of life insurance policy for the self-employed company director.

Your company pays the contributions for your IPP and enjoys tax benefits. Because the premiums are completely deductible as company expenses. This means you only pay 20 percent tax on the accrued capital, benefiting both you and your company.

CAN YOU ACCUMULATE YOUR SUPPLEMENTARY PENSION IN CONJUNCTION WITH YOUR INDIVIDUAL PENSION PLAN?

Before you take out an individual pension plan, we advise you to optimize your pension capital with a supplementary pension. Would you like to accumulate both? This is possible if you stick to the 80 percent rule: if you accumulate capital with a statutory pension and a supplementary pension (supplementary pension, individual pension plan or group insurance), the sum of that capital (converted into annual interest) may not exceed 80 percent of your most recent gross annual salary.

Do you have any questions about you individual pension plan? Direct them to Partena Compass.

 

Related articles

  • Acquisition_EasyPay

    As of today, EASYPAY GROUP, the largest family-owned HR solutions group in Belgium, is officially part of Partena Professional.

    As of today, EASYPAY GROUP, the largest family-owned HR solutions group in Belgium, is officially part of Partena Professional, the well-known HR and payroll service provider.

    Read more

  • Partena Professional acquires EASYPAY GROUP

    Partena Professional and EASYPAY GROUP have reached an agreement to acquire the interests of the Pareit family in EASYPAY GROUP. Through this agreement, Partena Professional acquires 100% of the shares of the Pareit family, thus taking control of the entities of EASYPAY GROUP.

    Read more
  • Microsoft

    Reduced accessibility due to problems at Microsoft

    Due to technical issues at Microsoft, we are currently experiencing accessibility issues. Please excuse us for the inconvenience.

    Read more