Team USA is not expected to win, but they believe actions speak louder than words. (Definition of âactions speak louder than wordsâ from the Cambridge Academic Content Dictionary Â© Cambridge University Press)
If the plan year is different the fiscal year, there is a good chance two sets of compensation values will need to be used, one for deductibility purposes, and the other for plan allocation purposes. The ESOP plan document definition of compensation may be different than the compensation used for deduction limits.
Example: This year, an individualâs annual contribution limit amounts to $10,000. If he contributes $7,000 to a spousal RRSP, his maximum contribution to his own RRSP will be limited to $3,000 for that year. Nevertheless, he will claim a total deduction of $10,000 in his tax return.