Deferred profit sharing plan

With a DPSP, you can share a portion of your company’s profits with your employees. This kind of plan is often combined with a group RRSP.


For employersFor employees
  • Helps drive employee engagement
  • Contributions and operating costs are tax-deductible
  • Provides flexibility and discretion in terms of employer contribution amounts
  • Gains grow tax-free
  • Accumulate savings without having to make contributions
  • Variety of investment options to choose from


  • Minimum contribution amounts based on previous years’ profits
  • Owners with at least 10% stake in company shares aren’t eligible for plan
  • No employee contributions
  • Employer contributions vested after no more than two years


  • Plan needs to be registered with Canada Revenue Agency
  • Administered by trust
  • No annual meeting required
  • No regulatory fees
  • Either employees or administrator responsible for investment choices
  • No investment policy required

This text is for information purposes only. Refer to the policy for all conditions, exclusions and restrictions.