A reward for bottom-line success
A Deferred Profit Sharing Plan (DPSP) is an excellent way to motivate and engage your workforce, and reward their contribution to your company’s bottom line. This employer-sponsored plan allows for profit sharing through a registered savings plan, and provides an excellent complement to a group RRSP. A Link DPSP provides cost savings as employer contributions do not attract payroll tax, and flexibility as employer contributions are locked in until fully vested or the employee retires.
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Features and Benefits of a Link DPSP
- Only a plan sponsor contributes to a DPSP
- Contributions do not attract payroll taxes
- Contribution amounts are tax deductible
- No requirement for plan sponsors to contribute in years where no profits are accrued
- Tax-deferred for members
- Vesting rules are permitted
- Employees only have access to contributions upon leaving employment (and meeting vesting requirements)
- Employee contributions are held separately in a group RRSP (no vesting)
Financial Wellness Benefit Plans
Create a culture of caring