 鲜花( 2)  鸡蛋( 0)
|
What is a Pension Adjustment?7 Y: Y$ o. w- i' p( w, k" Q; P
6 v# V* v9 T% r* h1 b8 L; W
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. 0 h4 [; K- m" H( k; P
; f3 U8 O# \- \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.
3 S7 L% W5 Y, K. f7 M# L* \* }; x: p9 n' }, y/ \$ J
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. 4 n) e; e# j. h0 ~4 w; q ^
/ K i' ]% h" a' \/ T4 h" k
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). - Z& `7 k& \2 `. L" L t- \2 Y
|
|
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
