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they can be left in the Plan to provide additional Queen’s pension.you can transfer the funds to an external non-locked in RRSP, which means they can be subsequently deregistered or used to buy a Registered Retirement Income Fund or.you can withdraw the funds in cash (but will have to pay income tax).At retirement, the funds are yours and there are several options: If you die in service, the value of your AVC account will be payable to your named pension beneficiary. Note that your AVCs cannot be withdrawn prior to leaving Queen’s. if set up via payroll deduction the reduction in income tax will be factored in by Payroll Services.no concerns over how your money is being managed and.good rates of return (the same as that experienced by the Queen’s Pension Plan).Monthly AVC Application (PDF, 207 KB) Reasons to make AVCs Therefore, your 2022 RRSP limits will be reduced significantly (and may be eliminated unless you have some carry forward “room” based on unused RRSP limits of prior years). When Pension Service calculates your pension adjustment for 2021 (Box 52 on your T), this figure will include any AVCs made during the calendar year by payroll deduction.
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So, if you decide to make AVCs in 2021, you can make an RRSP contribution this year as well. RRSPs work on the basis of the prior year’s information – CRA (Canada Revenue Agency) calculates your 2021 RRSP limit based on your 2020 tax filing, and provides your contribution limit as part of the corresponding assessment notice. Your AVC limit each year is 18% of your pensionable earnings in that year to a dollar limit ($29,2) less your “pension adjustment” in that year. The basic rules on Additional Voluntary Contributions to the Queen’s Pension Plan (AVCs) differ somewhat from a Registered Retirement Savings Plan (RRSP). Additional Voluntary Contributions (AVCs) and your RRSP