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Deferred Profit Sharing Plan

   Also found in: Acronyms 0.01 sec.
Deferred Profit Sharing Plan
A pension plan in which an employer distributes a set percentage of the company's profits into accounts for the employees participating in the plan. The DPSP operates like most other pensions and retirement plans, but instead of placing a set dollar amount into the accounts, it places profits. The idea behind a DPSP is to encourage employees to work for the company's profitability. Employees do not pay taxes on their DPSPs until they begin to make withdrawals after retirement. DPSPs are available in Canada and must be registered with the Canada Revenue Agency.


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A less common alternative that has particular advantages is a Deferred Profit Sharing Plan (DPSP).
The Principal will begin providing services for the Deferred Profit Sharing Plan by April 2005.
 
 
 
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