Defined Contribution Pension Plan

by Tax Guy - Burlington Accountant on February 1, 2010 Print This Post Print This Post

A defined contribution plan (also know as money purchase plans or MPP’s) are registered pension plans where the employee knows what the contribution to the plan will be but the future value is not known. Funds in these plans may be invested in a variety of instruments and many employees may have some control over these investments.
Under defined contribution plans, the employee contributions are deductible similar to RRSP contributions and the employers contributions reduce the RRSP deduction limit.

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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