Deferred Profit Sharing Plan (DPSP)

  

Canada has great beer and hockey, some great musicians (Rush, Arcade Fire, Neil Young, Joni MItchell), and some good ideas about corporate compensation.

Canada’s Deferred Profit Sharing Plan (DPSP) is an added component to give flexibility in retirement benefits. Companies get to write off periodic profit sharing among all employees, and it goes into tax deferred status to be either invested or transferred into a retirement account, or withdrawn and taxed.

Now if Canada could cut their extraneous and redundant taxes so that companies had more of a profit to actually share, the DPSP could be a major model for other countries’ global corporate compensation reform, instead of a sidebar.

Related or Semi-related Video

Finance: What does "Tax Deferred" mean?509 Views

Up Next

Finance: What is Deferred Compensation?
8 Views

What is Deferred Compensation? The process of a company taking a portion of wages due and paying it out at a later date is referred to as `deferred...

Find other enlightening terms in Shmoop Finance Genius Bar(f)