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How pension contributions affect your tax returns
Views: 471 Many employers offer registered pension plans (RPP) where employees contribute a certain amount and the employer contributes an amount in relation to the amount contributed to by the employer. On the T4, employee contribution, “RPP contributions”, is recorded in box 20 and the employer contribution, “Pension Adjustment” is recorded in box 52. RPP contributions can be deducted from your income. This serves to reduce your taxable income. Pension adjustment is a non-taxable but it will reduce your RRSP contribution for the next year. Taxes are complex and have to take your individual situation into account. However, following is …
