What is a Pension Adjustment (PA) and why is it deducted from my allowable RRSP contribution room?
Generally speaking, you will have a PA amount if you are the member of a Registered Pension Plan (RPP) or you have accrued benefits as a member of a Deferred Profit Sharing Plan (DPSP).
The PA includes amounts that have accrued to your benefit from your pension plan even though the benefits have not vested with you yet. The PA amount is calculated by your employer and represents the value of pension benefits accruing to you as an employee. The PA reduces your RRSP contribution room; they are never a negative number and thereby increasing your allowable RRSP contribution limit.
- What income is included in the calculation of my allowable RRSP contributions?
- What income does not qualify as Eligible Earned Income?
- How is my RRSP contribution amount calculated?
- If I leave my current employer and my pension benefit is less than the Pension Adjustments (PAs), do I get my RRSP contribution room back?
- What is a Past Service Pension Adjustment (PSPA)?
- What is the maximum I can contribute to my Individual and Spousal RRSPs for 2010, 2011 and 2012?
- What is the maximum amount I can contribute to my or my spouse's RRSP in 2013 and 2014?
- What are the deadlines for making contributions and claiming them on my income tax return?
- Do I need to deduct all of my RRSP contributions in the tax year they were made?
- I think I have over-contributed to my RRSPs. What can I do?
- Do my RRSP contributions need to be made with cash?
- Can a deceased person's estate contribute to the deceased's RRSP if they still have allowable RRSP contribution room available?
- Is there an age limit for making RRSP contributions?
- I currently have allowable RRSP contribution room that I will never be able to use. Can I gift or transfer it to another person?
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