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pension adjustment

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Financial Dictionary

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.

Investopedia Commentary

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.

Related Links

Analyzing Pension Risk

See also: CPP, Income Tax, Pension Plan, RRSP

Also spelled: PA

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