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A Deferred Profit Sharing Plan allows organizations to transfer company profits to employees without incurring taxes. This allows companies the opportunity to share the company's growth and success, and is an effective means to help employees save for their retirement.
Eligibility
Individual companies determine and notify their members about the eligibility requirements specific to their plan.
Vesting
Companies may set specific vesting periods in relation to the contributions made to employees. Once enrolled, members receive an information booklet outlining the requirements of the plan.
Minimums
- $25 per investment, per payroll contribution, depending on investment selected.
- $1,000 for GICs (payroll deductions accumulate in a savings account until minimum is reached and then are automatically invested into a GIC)
Investment Options
- Savings Deposits.
- Guaranteed Investment Certificates (GICs).
- Over 50 RBC Funds to choose from.
Contribution Limits
Only your employer can contribute to your DPSP. DPSP contributions are formulated by the company. The maximum contribution allowed to individual employees by the Canadian Revenue Agency is limited to the lesser of:
- 18 percent of current annual income, or
- 50 percent of the allowable money purchase limit
| Year* |
DPSP |
Money purchase Limit |
| 2006 |
$9,500 |
$19,000 |
| 2007 |
$10,000 |
$20,000 |
| 2008 |
$10,500 |
$21,000 |
| 2009 |
$11,000 |
$22,000 |
* For subsequent years, the money purchase limit will be increased by increases in the Average Industrial Wage.
Your Next Step
We're committed to offering you the help you need, when you need it. Reaching us is as easy as picking up the phone. Our Royal Direct service is free and available seven days a week.
To find out if your company has an RBC group savings plan or to start taking advantage of it, simply:
- Call us at 1-800-ROYAL®1-1 (1-800-769-2511),
- Visit one of our branches to open your account today
- Talk to your human resources department
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