 鲜花( 2)  鸡蛋( 0)
|
What is a Pension Adjustment?
/ G1 S0 y$ X9 u2 _- i
& Y A0 Q9 z8 p, F4 H! B3 F; YA pension adjustment or PA is an amount that reduces the RRSP deduction limit of persons who are in a company-sponsored registered pension plans. This is an attempt to equalize the various tax deferred savings programs in Canada and ensure that persons who participate in a company pension plan do not have the same level of RRSP contributions as those who do not. 8 z9 J; c4 e- H( B; L. m8 H0 G3 h
' f1 }# C y- o4 _
Thus, persons who are not in a pension plan do not have a pension adjustment. Those who participate in a registered pension plan or a deferred profit sharing plan have a pension adjustment reported for each year of participation on their T4 slip (Statement of Remuneration Paid). The pension adjustment reported in a calendar year reduces allowable contributions to an RRSP for the next calendar year. # d& @, C. ]4 B E% l
( l5 D4 [+ X* o# TThe PA is the amount contributed by an employee and/or employer to an employee account in a defined contribution pension plan or deferred profit sharing plan, or the deemed value of pension benefits accrued during the year in a defined benefit pension plan.
9 \' z5 Q5 J; ~5 l" c. b! E4 Q( h# I+ @( d6 D
If a person is a member of a defined benefit pension plan, the PA is equal to nine times the benefit accrued during the year less $600. For example, a person who earned $40,000 would be able to contribute $7,200 or18% of earnings to the RRSP in the following year if there were no company pension. However, if the person earned a pension of, say, $500 last year in a company pension plan, then there would be a PA of $3,900 (9 times $500 less $600). The PA reduces the maximum allowable RRSP contribution to $3,300 ($7,200 less $3,900).
7 s* S; ^" C6 v! h% e& S |
|
狗仔卡
发表于 2015-2-21 00:07
提升卡
置顶卡
沉默卡
喧嚣卡
变色卡
显身卡
楼主
