Definitions for "Deferred Profit Sharing Plan"
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.