6:00 Were both of these max amounts and excess amounts eating up the participant's RRSP contribution room? I was confused how come people have $300k of commuted value after 10 years of service and still $50k in available RRSP room to accommodate excess amount? There should be no contribution room for all of that... If you could shed some light I would appreciate it! Thank you!
No matter what, you will get at least $600 of new deduction limit per year because of the Pension Adjustment formula. Most pensions don’t have a 2% funding formula across the board, so you will generate some deduction limit there. And consider that most people will have some RRSP room from years worked before they started wherever they have their pension.
6:00 Were both of these max amounts and excess amounts eating up the participant's RRSP contribution room? I was confused how come people have $300k of commuted value after 10 years of service and still $50k in available RRSP room to accommodate excess amount? There should be no contribution room for all of that... If you could shed some light I would appreciate it! Thank you!
No matter what, you will get at least $600 of new deduction limit per year because of the Pension Adjustment formula. Most pensions don’t have a 2% funding formula across the board, so you will generate some deduction limit there. And consider that most people will have some RRSP room from years worked before they started wherever they have their pension.