LINDSEY SMITH
VANCOUVER ISLAND – Attracting top talent helps keep your business competitive. A great way to show you put your people first is to offer attractive benefits like a Group Registered Retirement Savings Plan (GRSP) or a Deferred Profit Share Plan (DPSP). But which to choose?
A GRSP:
- is designed to help with recruitment and retention
- allows for a blend of employer and employee contributions that you can design;
- is available to all employees; and
- carries an annual minimum to keep the plan active.
A DPSP:
- is designed to reward good performance and build a sense of partnership between employer and employee;
- allows for periodic contributions from the employer as a share of business profits;
- has no minimum annual contribution amount, so you can defer contributions in less profitable years;
- has annual maximums set out by the Canada Revenue Agency; and
- only allows employees to participate, excluding anyone with an ownership stake.
Keep in mind you can open both a DPSP and a GRSP plan, as they can complement each other. GRSPs allow employees to contribute and receive the taxable benefit to contributions, while DPSPs offer more flexibility in how you share profits with your employees.
Retirement options are the same for both plans, as employees can transfer to an RSP or a Registered Retirement Income Fund (RIF), do a full taxable withdrawal of funds, or purchase an annuity.
If you have any questions, reach out to a financial expert. Don’t hesitate to email me at lindsey.smith@cccu.ca to find out more about what Coastal Community can offer.
Lindsey Smith CFP, RIS is an Investment Advisor with Coastal Community Private Wealth Group.
Coastal Community Private Wealth Group is a division of Coastal Community Financial Management Inc. (CCFMI), offering financial planning, life insurance and investments. CCFMI is a licensed life insurance agency and a wholly-owned subsidiary of Coastal Community Credit Union. All insurance products are subject to the limitations, terms and conditions in the applicable policy or insurance contract in force at the time of purchase or enrollment and applicable legislation. The products sold through Coastal Community Financial Management Inc. are not guaranteed or insured by a deposit insurer.
Caption: Lindsey Smith CFP, RIS
