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Deferred Profit Sharing Plan (DPSP)
Share a portion of your business profits with your employees.
The advantages of the Differed Profit Sharing Plan
How the DPSP benefits employers
• The DPSP is a cost-effective plan that can generate considerable savings for employers.
• Contributions are paid out of pre-tax business income and are tax deductible.
• Employers can set a vesting period of up to two years. If a participant leaves the company during the vesting period, contributions are returned to the employer.
How the DPSP benefits employees
• Contributions made on the participant's behalf are non-taxable and tax-sheltered in an individual account.
• Accumulated funds are not locked in for retirement. In some cases, funds can be withdrawn in part or in whole during the first two years of membership, depending on the vesting schedule.
• If participants leave the company, they can withdraw the funds (taxes are withheld at source) or transfer them tax-free into an RRSP, RPP or other DPSP.
