Deferred profit sharing plan

With a DPSP, you can share a portion of your company’s profits with your employees. This kind of plan is often combined with a group RRSP.

Advantages

For employers	For employees
Helps drive employee engagement Contributions and operating costs are tax-deductible Provides flexibility and discretion in terms of employer contribution amounts	Gains grow tax-free Accumulate savings without having to make contributions Variety of investment options to choose from

Employer	Employee
Minimum contribution amounts based on previous years’ profits Owners with at least 10% stake in company shares aren’t eligible for plan	No employee contributions Employer contributions vested after no more than two years

Administration	Investments
Plan needs to be registered with Canada Revenue Agency Administered by trust No annual meeting required No regulatory fees	Either employees or administrator responsible for investment choices No investment policy required

Note

This text is for information purposes only. Refer to the policy for all conditions, exclusions and restrictions.