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Quiz: Deferred Profit Sharing Plan (DPSP)

7 questions

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1 An employee asks to make his own contributions to the company DPSP. What is the position? He may contribute up to the DPSP limit Only the employer may contribute; employees cannot He may contribute, but only from after-tax income He may contribute if the plan permits it

Answer key unconfirmed — rests on 2 unverified claims.

2 Who may not benefit under a DPSP? Select all that apply.

Select all that apply.

A relative of a connected person An employee with less than two years of service A connected person, generally someone owning 10% or more of the issued shares of any class of the employer or a related corporation A relative of the employer, where the employer is an individual An employee who is also a member of the employer's registered pension plan

Answer key unconfirmed — rests on 2 unverified claims.

3 How does the DPSP limit relate to the money purchase limit? The DPSP limit is twice the money purchase limit They are set independently with no fixed relationship The DPSP limit is one half of the money purchase limit for the year They are the same amount

Answer key unconfirmed — rests on 2 unverified claims.

4 How are employer contributions and reallocated forfeitures credited to an employee under a DPSP limited? To 18% of the employee's compensation for the year To the greater of those two amounts To the DPSP limit for the year To the lesser of the DPSP limit for the year and 18% of the employee's compensation

Answer key unconfirmed — rests on 2 unverified claims.

5 By when must amounts contributed to a DPSP vest in the employee? Immediately on contribution No later than 24 months after each contribution is made On whatever schedule the plan specifies No later than 24 months after the employee becomes a member of the plan

Answer key unconfirmed — rests on 2 unverified claims.

6 Which of these are correct about DPSP filings and payments? Select all that apply.

Select all that apply.

The PA is reported in box 52 of the employee's T4 The plan files Form T3D annually Amounts paid out are reported on a T4A and are taxable to the recipient when received The plan files Form T244 annually Employer contributions are deductible to the employer within the prescribed limits

Answer key unconfirmed — rests on 4 unverified claims.

7 By when must forfeited amounts under a DPSP be dealt with? Within 60 days of the forfeiture Within 24 months of the forfeiture By the end of the year following the year of forfeiture By the end of the year of forfeiture

Answer key unconfirmed — rests on 1 unverified claim.

Unanswered questions are marked wrong. There is no partial credit.