In Canada, a type of profit-sharing plan in which employer contributions, up to certain limits, are tax deductible for the employer and tax deferred for the employee, and in which the employee can withdraw the benefit before retirement. The ways that plan funds can be invested are restricted. See also profit-sharing plan.----------[ Back
Using the DPSP, employers are able to "share" profits with employees in the forms of stocks, bonds or cash that are given out immediately or deferred until retirement. Using a formula, employers determine the annual contribution amount and the distribution upon retirement.
A tax-sheltered plan that allows an employer to set aside a retirement fund for employees based on a portion of company profits. The company contributes to the fund on behalf of the employee.
A plan used by employers to build a retirement fund for employees based on a share of the company's profits. Employees cannot contribute to DPSPs with their own money. The money grows inside the plan tax-free. G - L
A type of qualified retirement plan in which the company makes contributions to individual participant accounts.
A group plan established by the employer, which enables the employees to receive some of the corporation's profits in a tax-deferred manner. The employer makes cash contributions for an employee's retirement plans out of business profits. The contributions and earnings accumulate tax-free until withdrawn.
A tax-sheltered plan used by employers to build a retirement fund for employees based on a share of the company's profits. Funds can be transferred to an RSP, or used to buy a RIF or an annuity.
A savings plan to which employer contributions are made from profits, or determined in accordance with profits.
A Canadian retirement program under which plan sponsor contributions are related to the sponsor's profits and are tax deductible by the plan sponsor, subject to specified annual maximum amounts.
A savings plan in which employer contributions are allocated to each participating employee's account. Contributions are usually a defined percentage of profits earned by the business and are paid from profits. These plans are registered with the Canada Revenue Agency. Contributions under a deferred profit sharing plan can reduce your RRSP contribution room.
A plan that allows an employer to set aside a portion of company profits from the benefit of employees. A corporation makes a contribution to the plan on behalf of an employee.
A plan where employers make cash contributions for employee' retirement plans out of business profits. The contributions and earnings accumulate tax-free until withdrawn.
A registered plan for retirement savings purposes. Employers are the only ones that make contributions to this type of plan. Contributions made to the plan are based on the profits earned by the business.
A plan which enables a company to share profits on a tax assisted basis with non-shareholder employees. Contributions to DPSP are tax-deductible for the company and tax-sheltered for the employee until withdrawn from the plan.