Why is there no PA (pension adjustment) information on my T4A from OPTrust?
A. The PA is a value that represents your accrued benefit in the pension plan. As a pensioner you are no longer accruing a benefit in the Plan, so there is no PA reported. Each year Canadians are allowed to contribute up to 18% of their earned income to tax-sheltered registered retirement vehicles (e.g. pension plans, RRSPs etc.) This is called your contribution room. While you are employed, your employer lists on your T4 how much of this contribution room you have used up in that year by accruing benefits in your pension plan. This dollar amount is the figure shown on your T4 as the pension adjustment “PA”. When Canada Revenue Agency receives their copy of the T4 from your employer, they confirm the PA that you recorded on your income tax return and subtract that amount from your contribution room available for the year. The difference is the amount that you are able to contribute to your RRSP in the following year. Each year, when you receive your income tax Notice of Assessment from
*Sadly, we had to bring back ads too. Hopefully more targeted.