Deferred Profit Sharing Plan (DPSP)
An employer-sponsored Canadian profit sharing plan that is registered with the Canadian Revenue Agency. On a periodic basis, the employer shares the profits made from the business with all employees or a designated group of employees. Employees receiving a share of the profits paid out by the employer do not have to pay federal taxes on the money received from the DPSP until it is withdrawn. Investopedia Says:
An employer that chooses to participate in a DPSP with some or all of its employees is referred to as the sponsor of the plan. Employees who are granted a share of the profits are the trustees of the plan. DPSPs are a type of pension. Related Terms:
Canadian Revenue Agency - CRA
Deferred Account
Income Tax
Non-Qualified Deferred Compensation - NQDC
Registered Pension Plan - RPP
Registered Retirement Income Fund - RRIF
Registered Retirement Savings Plan - RRSP
Self-Directed RRSP
Tax Deferred |