Deferred Profit Sharing Plan
Grow your employees’ retirement funds with flexibility, control, and shared tax advantages.
What’s in it for your employees
Everyone saves on taxes
All contributions grow tax-free for your employees and are tax-deductible for your company.
Funded by your company’s profits
As the employer, you take the lead in funding your employees' accounts for them — instead of the other way around. Hello, best boss ever!
Shared success
Offer a meaningful financial incentive that rewards (and retains) top talent for their performance.
The DPSP by the numbers
$16,905
The maximum amount an employer can contribute to an individual DPSP this year. The contribution limit is 18% of an employee’s income or 50% of the CRA’s annual money purchase (MP) limit, whichever is less.
2 years
The maximum vesting period that can be applied to a DPSP. You can offer a shorter period, or — if you’re feeling extremely generous — no waiting period at all. If an employee leaves before their vesting period, all funds go back to the company.
65
The typical age set by employers to allow withdrawals from a DPSP. You can also allow withdrawals with options for early retirement or to acknowledge tenure milestones.
Your call
Contribute as much you want (up to the limit) and whenever you want — annually, quarterly, monthly, or ad hoc. There’s never an obligation to contribute unless your company chooses to.
WHO SHOULD OPEN A DPSP?
DPSPs are for employers who who want a more flexible, direct way to fund their employee’s retirement goals.
Share in the success of profitable years while keeping more control over when, how, and who receives funding.
Compare retirement savings accounts
The Group RRSP and DPSP are both designed to help your employees save up for retirement. All limits are the same as personal limits.
Attribute | GRRSP | DPSP |
|---|---|---|
| Helps you save for | Retirement | Retirement |
| Eligibility | 18–71 years old | 18 or older |
| Annual contribution limit | 18% of previous year’s income, up to $32,490 | The lesser of 18% of previous year’s income or 50% of the CRA MP limit |
| Tax impact on contributions | Deducted from taxable income | Deducted from RRSP contribution limit in the following year |
| Tax impact on withdrawals | Taxed as income (with some exceptions) | Taxed as income (with some exceptions) |
| Contribution deadline | 60 days after December 31st | No deadlines or restrictions |
| Government benefits | Withdrawals may impact other government benefits based on income | Withdrawals may impact other income-based government benefits |
| Withdrawal stipulations | Must withdraw to a Retirement Income Fund at 71 | Generally must withdraw to Retirement Income Fund at 71, but employers can add stipulations for earlier withdrawals |
Why go with Wealthsimple
Easy plan management
With an intuitive and easy-to-use dashboard that integrates with most HR systems, onboarding is simple and your everyday admin is efficient and smooth.
Insightful knowledge
From personalized advisor-managed portfolios to plan support whenever you need it, you and your employees are always in good hands.
More savings
Most of your employees will pay less than 1% in management fees, meaning your team can reach their savings goals faster — while you’re saving, too.
Transferring your group plan is easy
Have an existing group plan with another provider? We’ll guide you through our seamless transfer process, and in most cases, reimburse most fees involved in transferring your accounts.
Group accounts for any savings goals
No two employees are the same — that’s why we offer employers a range of group account types to suit what your employees are saving for.
Set your team up with more ways to save
Tell us about your company and we’ll be in touch to help you get started.