Register a deferred profit sharing plan - What you need to apply

From: Canada Revenue Agency 

3. What you need to apply

A DPSP can be set up as a customized plan or by using a specimen plan. A customized plan is a plan that has plan terms and funding documents that are specific to an employer’s DPSP. 

A specimen plan is one that is set up by a financial institution with common plan features that is submitted to the Canada Revenue Agency for approval. The specimen plan will also have limited variables that allow for some choice in plan terms and investment choices. 

DPSP registration for customized plans

All applications for registration of plans that are not based on an approved specimen plan must have the following:

• a completed Form T2214, Application for Registration as a Deferred Profit Sharing Plan
• a plan text
• a trust agreement
• where the employer is a corporation, a certified copy of the board resolution authorizing the application. If there is more than one employer, the board resolution must contain a provision inviting other employers to participate along with a resolution of the other employers who adopt the plan.

DPSP registration using an approved specimen plan

In order to get a specimen plan approved, the financial institution must send us the following:    

• a plan text
• a trust agreement
• a statement of limited variables, if applicable

Once a specimen plan is approved, it is assigned a specimen plan number. The financial institution can use an approved specimen plan to market to prospective clients and to simplify the registration process.

• If a plan is based on an approved specimen plan that is already filed with us, no plan text or trust agreement is required with the application. Send a completed Form T2214, Application for Registration as a Deferred Profit Sharing Plan, and specify all variables that are selected from the specimen plan. Applications for the registration of a plan based on a specimen plan should be submitted individually. Where the employer is a corporation, we also require a certified copy of the board of resolution authorizing the application.