Deferred Profit Sharing Plan (DPSP)

⭐ Advantages

✔ No tax on growth until you withdraw
✔ Employer pays for your retirement
✔ Can be transferred to RRSP tax-free
✔ Helps diversify retirement income

⭐ Disadvantages

✖ You cannot contribute yourself
✖ Vesting rules may delay ownership
✖ Reduces your RRSP room

Contribution limits

• Employer contributions to a DPSP reduce your RRSP contribution room.

• Maximum DPSP contribution for 2025 (same formula every year):
  Either

  • 18% of your annual compensation, OR

  • Annual limit set by CRA (usually similar to RRSP limit).