Tuesday, September 6, 2016

RRSP Savings and Pension Adjustment

11:31 AM


Why are allowable RRSP contributions so low if the earnings are high enough to contribute the maximum amount?


Low RRSP contributions for persons earning substantial money. may occur if there is an ongoing defined benefit pension plan. Note that you entered a defined benefit pension for your client, and the system estimates a pension adjustment, which reduces the RRSP contribution room.

If your client is not currently accruing a defined benefit pension, then you should enter this amount as a "defined benefit pension from a former employer" and this will cause no future pension accruals and no pension adjustments.


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