Preston has been working for Thompson Industries for just over a year and has been...

IFSE Institute CIFC Question Answer

Preston has been working for Thompson Industries for just over a year and has been part of Thompson's deferred profit sharing plan (DPSP) program from his start date. Preston wants to know more about

these types of plans.

What would you tell Preston about DPSPs?

The employer is obliged to make DPSP contributions for an amount equal to employee contributions.

Once the plan is set up, the employer is obliged to make plan contributions each year.

DPSP contributions are tax-deductible to the employer.

Investment growth within the plan is taxable each year.

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Preston has been working for Thompson Industries for just over a year and has been...

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