Deferred profit sharing plans (DPSPs)
A DPSP is a plan that allows a portion of a company's profits to be shared with employees. Since the amounts contributed to the plan come from the company's profits, contribution amounts can differ from one year to the next.
Only an employer can contribute to a DPSP. Employees cannot contribute, and significant shareholders cannot be members of the plan.
If your employer offers you a DPSP, you have a vested right to amounts paid into your account after a maximum of two years of membership. You will have access to a plan without having to contribute to it. A DPSP offers you deferred, tax-sheltered income.
If your plan allows, you can use amounts in a DPSP for the Home Buyers' Plan (HBP) and the Lifelong Learning Plan (LLP) .