Deferred Profit Sharing Plan

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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.
References in periodicals archive ?
88) Similarly, the Uniform Act moves to exempt all rights, property and interest in RRSPs, DPSPs and RRIFs from seizure and further exempts a portion of payments out of such plans.
There are simply insufficient reasons to justify not creating an exemption for RRSPs, RIFFs and DPSPs, as concluded by the Alberta Law Reform Institute:
The addition of a DPSP, an employer-sponsored deferred profit sharing plan, to FutureStep now gives an employer the option of linking plan contributions to the profitability of the business and, on a periodic basis, sharing business profits with employees by contributing to the DPSP on each employee s behalf.
Unitholders who held their Paramount Energy Trust Units outside of an RRSP, RRIF, RESP or DPSP, through a broker or other intermediary and received cash distributions during the period, will receive "T3 Supplementary" slips directly from their broker or intermediary, not from the transfer agent or Paramount Energy Trust.
Unitholders who hold their Trust Units outside of an RRSP, RRIF or DPSP through a broker or other intermediary and who have received cash distributions for the 2008 calendar year, will receive a "T3 Supplementary" slip directly from their broker or intermediary, not from the transfer agent of the Fund, Computershare Investor Services (the "Transfer Agent"), or the Fund.
A Unitholder that does not hold his or her Units in an RRSP, RRIF, RESP or DPSP, must report the taxable portion of the 2008 income allocated by the Trust to the Unitholder, on the Unitholder's 2008 Income Tax Return.
Unitholders who hold their Trust Units outside of an RRSP, RRIF or DPSP through a broker or other intermediary and who have received cash distributions for the 2007 calendar year, will receive a "T3 Supplementary" slip directly from their broker or intermediary, not from the transfer agent of the Fund, Computershare Investor Services (the "Transfer Agent"), or the Fund.
Unitholders who hold their fund units outside of an RRSP, RRIF, RESP or DPSP and were entitled to receive distributions on a distribution record date within the calendar year 2007 will receive a T3 Statement of Trust Income Allocations and Designations slip ("T3") directly from Computershare Investor Services or from the broker/intermediary who the unitholder holds their fund units through.
A Unitholder that does not hold his or her Units in an RRSP, RRIF, RESP or DPSP, must report the taxable portion of the 2006 income allocated by the Trust to the Unitholder, on the Unitholder's 2006 Income Tax Return.
Trust Units Held Within an RRSP, RRIF, RESP or DPSP
Unitholders who hold their Trust units outside of an RRSP, RRIF, RESP or DPSP and were entitled to receive distributions on a distribution record date within the calendar year 2006 will receive a T3 Statement of Trust Income Allocations and Designations slip ("T3") directly from Computershare Investor Services or from the broker/intermediary who the unitholder holds their Trust units through.
No amounts are required to be reported on the 2006 T1 Income Tax Return where Trust Units are held within an RRSP, RRIF or DPSP.