DEFINITION of 'Pension Adjustment - PA'

The amount of contributions that can be made to a Registered Retirement Savings Plan (RRSP) on top of any contributions to a Registered Pension Plan (RPP) in a given year.

BREAKING DOWN 'Pension Adjustment - PA'

An individual can choose to contribute this amount to a registered plan such as a Registered Retirement Savings Plan (RRSP), or he or she can defer this amount until later years when the tax deduction will be more useful.

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RELATED FAQS
  1. Are contributions to Registered Pension Plans (RPPs) tax deductible?

    Contributing to a Registered Retirement Plan offers eligible employees a way to make tax-deductible contributions to a retirement ... Read Answer >>
  2. What are the main reasons to obtain a Registered Retirement Savings Plan (RRSP)?

    Learn about some of the major benefits of opening and contributing to a Registered Retirement Savings Plan throughout your ... Read Answer >>
  3. What are the main reasons not to get a Registered Retirement Savings Plan (RRSP)?

    Find out some of the reasons why you might want to reconsider opening up a Registered Retirement Savings Plan and instead ... Read Answer >>
  4. Is a Registered Retirement Savings Plan (RRSP) taxable in the U.S.?

    Learn how the IRS treats Canadian Registered Retirement Savings Plans that are held by U.S. citizens or residents, and discover ... Read Answer >>
  5. What are the differences between a Registered Retirement Savings Plan (RRSP) and ...

    Learn the key differences between RRSPs and RPPs. Review the basics of Registered Retirement Savings Plans and Registered ... Read Answer >>
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    Learn about registered retirement saving plans, and find out how the Government of Canada provides tax benefits for those ... Read Answer >>
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