 |
These are not regulated by pension legislation, but
are registered under and must comply with the Income Tax Act. |
|
The contributions to the plan are made based on the
profits of the company. |
|
This plan may be set up for some or all of the employees. |
|
Employees cannot contribute to the plan, other than a direct transfer from
another DPSP, after 1990. |
|
Contributions are not taxable to the employee. |
|
Income in the plan is not taxable. |
|
Pension adjustment (PA) from DPSP reduces the amount that the employee
can contribute to an RRSP. |
|
The employee is taxed when withdrawals are made from
the plan. |
|
When the employee leaves their job prior to retirement, or
when they retire, the savings can be taken out in a lump sum, or in
instalments for up to 10 years. |
|
DPSP lump sum payments can be transferred tax-free to an
RPP, RRSP,
or RRIF. |
