 鲜花( 2)  鸡蛋( 0)
|
What is a Pension Adjustment?2 l4 y# N0 @ Y( Q: I8 Y# D% x
. P8 R1 A; I% O G2 t( }A 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.
. V* ?/ \& C" F2 r+ f! ]; {# Y1 e9 j S( }% ^, g4 [2 A& Y& I
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. . I1 Z- m& F" O$ {# w" V! K2 ?: e
: I! d& l% c2 G: r7 X) G: m& S
The 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. : a. R, k9 L0 J) {% y f' U
( n+ d/ S+ t6 d: P9 cIf 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). 4 a3 ?2 l+ O' u* w# J9 j8 C
|
|
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
