An ESP is a non-registered account that your employer sets up to help you save.
Three things to know about ESPs
- You decide how your money is invested from the investment options your employer makes available.
- It’s not a registered plan, so your contributions are made from your after-tax earnings. Investment earnings such as interest income, dividends, or capital gains are taxable to you each year.
- The plan may restrict withdrawals or impose fees for making withdrawals, so understand the details of your plan before you sign up.
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