DPSP

A Deferred Profit Sharing Plan (DPSP) is a plan that employers use to build a retirement fund for employees. The company pays a share of its profits into the fund in behalf of each employee. The money grows inside the plan tax-free. Employees are allowed to invest their vested money choosing from a variety of investment funds that best suits their objectives and risk tolerance. Only contributions from the employer are allowed into the plan. Funds deposited into the account are not subject to payroll deductions at source (including NO federal or provincial taxes). However, the funds are taxable in the hands of the employee when withdrawn. DPSP Plans are offered by reputable insurance carriers.