RRSP vs DCPP

[jj30318]

已解决

 

[dkwan]

Here is your answer:

1) Your contribution is tax deductible
2) Contribution to pension plan will result in Pension Adjustment at the end of year. The adjustment will reduce your RRSP room for the year. Since Defined Contribution (DC) pension adjustment is 1:1. Therefore, Pension limit = RRSP limit = 18% ( Combined your contribution and your employer contribution )
3) Yes, explained above.

Hope that helps.

 

[dkwan]

correct, but you might consider contribute to your RRSP instead of your pension.

Reason
1) Pension is lockin, and you cannot take it out to buy house, or for emergency..etc etc.
2) You might want to diversify your investment by not only invest in your pension plan.

Recommended
1) Invest only just the maximum threshold which your employer would match, and the rest invested in your RRSP for the flexiblity and diversity.

 

[dkwan]

If you are leaving the company, you might have the right to own the pension.

Typical pension plan would have to join for 2 years before you owns it. Ask your adminstrator for details. If you claim your pension for income tax, and you leave the company and the company takes away the contribution portion.

You mihgt result in something call "Pension Credit Adjustment" and reverse your RRSP room, and you might face penalty. Ask your pension plan adminstrator for detail.