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Types of workplace savings plans

Four things to know about Employee Stock Purchase Plans Add to ...

An ESPP lets you set aside a percentage of your pay to buy stock of the company you work for. 

Four things to know about ESPPs

  1. Your contributions are matched in part or in full by your employer.
  2. The total amount is used to buy shares of the company at market value every pay period.
  3. Your employer’s matching contributions are fully taxable to you as employment income.
  4. Many employee stock purchase plans let you hold your stock in a Group RRSP so that contributions are tax deductible.

Learn more about investing in stocks.

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Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca

 

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