Many companies offer their employees Deferred Profit Sharing Plans. Contributions to the plan can be set by a wide variety of formulas. The DPSP is very similar to an RRSP, with the only major difference being that the DPSP contributions reduce RRSP room a year later, allowing you higher RRSP contribution amounts this year.
|Tax on growth||no||no|
|Retirement||RIF, annuity||Xfer to RRSP RIF, annuity|
|Employer contributions as income on T4||yes||no|
|EI & CPP Deductions||yes||no|
|Receipt||yes||no , included in PA|
|Lowers RRSP room||same year||next year|
For the forms required to open a ScotiaMcLeod DPSP account (if you are part of an employer plan offering DPSPs), click here.
ScotiaMcLeod is a division of Scotia Capital Inc., member of CIPF.
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The Spiess McGlade Team is a personal trade name of Carl Spiess and Allan McGlade.