Which of the Following Statements Regarding Profit-Sharing Plans Is NOT

question 34

Multiple Choice

Which of the following statements regarding profit-sharing plans is NOT correct?

• A) Deferred profit-sharing plans (DPSPs) need to be registered with the federal government.
• B) So called "top-hat" plans are often widely available to all employees, thus making them eligible for registration as a DPSP.
• C) Income generated by a DPSP is tax exempt until such time as the employee cashes in the plan.
• D) The majority of Canadian profit-sharing plans are cash-based plans.