,CANADA ,CU/OMS                       #A
& ,REV5UE ,AG5CY

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
    
,SUBJECT3 ,9COME ,TAX ,ACT
  ,REGI/]$ ,P5.N ,PLANS--,EMPLOYEE'S
  ,3TRIBU;NS
,NUMB]3 ,,IT-#AFG;,R#F
,DATE3 ,SEPTEMB] #AD1 #AIIE
,REF];E3 ,SUBSEC;N #ADG.B7#D7 & P>AGRAPH
  #H7#A77M7 7AL SEC;NS #E1 #F1 & #ADI1
  SUBSEC;NS #AH7#AA71 #ABF7#A71 !
  DEF9I;NS ( 8DEF9$ B5EFIT PROVI.N0 &
  8M"OY PUR*ASE PROVI.N10 9 SUBSEC;N
  #ADG.A7#A71 & 7#AJ71 #ADG.B7#E7 &!
  DEF9I;NS ( 8A4I;NAL VOLUNT>Y 3TRIBU;N0
  & 8REGI/]$ P5.N PLAN0 9 SUBSEC;N
  #BDH7#A71 & SUBP>AGRAPH #EF7#A77A77;I7
  (! ,9COME ,TAX ,ACT2 SUBSEC;N
  #HEJJ7#D7 (! ,9COME ,TAX ,REGUL,NS7


                                      #A
               ,APPLIC,N             A#A
    
  ,? BULLET9 C.ELS & REPLACES ,9T]PRET,N
,BULLET9 ,,IT-#AFG;,R#E DAT$ ,M>* #AD1
#AIHE1 &! ,SPECIAL ,REL1SE DAT$ ,FEBRU>Y
#AI1 #AIIJ4
  ,G5],Y1 ! BULLET9 IS E6ECTIVE =
..#AIIA & SUBSEQU5T TAX,N .YE>S2 H["E1 X
AL APPLIES 6UNDEDUCT$ PRE-#AIIJ CURR5T
S]VICE & PRE-#AIIJ PA/ S]VICE 3TRIBU;NS
MADE 0AN EMPLOYEE 6A REGI/]$ P5.N PLAN
7,,RPP74 ,= M 9=M,N REG>D+ !
DEDUCTIBIL;Y ( EMPLOYEE ,,RPP 3TRIBU;NS
=! TRANSI;NAL YE>S ( #AIHF 6#AIIJ1 REF]
6! APPLICA# LAW &! 9COME TAX GUIDE CALL$
,,RRSP'S & ,O!R ,REGI/]$ ,PLANS =
,RETIRE;T 7=M]LY CALL$ ! ,P5.N & ,,RRSP
,TAX ,GUIDE7 = ^? YE>S4 ,! GUIDE IS
AVAILA# AT ALL ,REV5UE ,CANADA TAX
S]VICES (FICES4




                                      #B
                ,SUMM>Y              B#A
    
  ,9 G5]AL1 ? BULLET9 D1LS )!
DEDUCTIBIL;Y (3
  7A7 3TRIBU;NS MADE 0AN EMPLOYEE 6AN
    ,,RPP 9 RESPECT ( CURR5T S]VICE &
    PA/ S]VICE1 Z SPECIFI$ 2L2
  7B7 9T]E/ ON BORR[+S 6MAKE EMPLOYEE
    3TRIBU;NS 6AN ,,RPP2 &
  7C7 EMPLOYEE CURR5T S]VICE & PA/
    S]VICE 3TRIBU;NS 9 SPECIAL
    CIRCUM/.ES4
  ,) RESPECT TO 7A7 ABV1 9 CALCULAT+
9COME =A TAX,N YE> AF #AIIJ1 Z 4CUSS$ 9
? BULLET91 EMPLOYEE 3TRIBU;NS 6AN ,,RPP
>E 9 RESPECT (3
    --CURR5T S]VICES R5D]$ .AF .#AIHI2
    --PA/ S]VICES R5D]$ .AF .#AIHI2
    --PA/ S]VICES R5D]$ .2F .#AIIJ :ILE
      A 3TRIBUTOR1 7AL;G ) UNDEDUCT$
      3TRIBU;NS = CURR5T S]VICES R5D]$
      2F #AIIJ72 &
    --PA/ S]VICES R5D]$ .2F .#AIIJ :ILE
      N A 3TRIBUTOR4
                                      #C
             ,,IT-#AFG;,R#F          C#A
  ,"! >E _M NEW T]MS RELAT+ 6REGI/]$
PLANS1 "S ( : H BE5 BRIEFLY DESCRIB$ 9 !
,GLOSS>Y 9 P>AGRAPH #AG ( ? BULLET94
,TRANSF]S 2T PLANS >E N 4CUSS$4 ,= 9=M,N
REG>D+ TRANSF]S1 PL1SE REF] 6! ABV-M5;N$
9COME TAX GUIDE4
  ,! SUBJECT MATT] ( ? BULLET9 IS >RANG$
"U ! FOLL[+ H1D+S3

,TITLE                         ,P>AGRAPH
,G5]AL -;TS """"""""""""""""""""" #A1 #B
,EMPLOYEE 3TRIBU;NS = CURR5T
  S]VICE & PO/-#AIHI PA/ S]VICE--
  P>AGRAPH #ADG.B7#D77A7 """""""""""" #C
,EMPLOYEE 3TRIBU;NS = PRE-L#IIJ
  PA/ S]VICE :ILE N A 3TRIBUTOR--
  P>AGRAPH #ADG.B 7#D77B7 """"""""" #D-F
,EMPLOYEE 3TRIBU;NS = PRE-L#IIJ
  S]VICE :ILE A 3TRIBUTOR--
  P>AGRAPH #ADG.B 7#D77C7 """"""" #G1 #H
8,PA/ S]VICE0--YE> ( D1? ( AN
  EMPLOYEE """""""""""""""""""""""""" #I
,T1*]S--SUBSEC;N #ADG.B7#E7 """""""" #AJ
                                      #D
             ,,IT-#AFG;,R#F          D#A
,NON-DEDUCTI# 3TRIBU;NS--
  SUBP>AGRAPH #EF7#A77A77;I7 """"""" #AA
,DEDUC;N 0EX-EMPLOYEE--SUBSEC;N
  #ADG.B7#D7 """"""""""""""""""""""" #AB
,9T]E/ ON M"OY BORR[$ 6MAKE
  CURR5T S]VICE 3TRIBU;NS--
  SUBSEC;N #AH7#AA7 & P>AGRAPH
  #ADG.B7#D77A7 """""""""""""""""""" #AC
,9T]E/ ON M"OY BORR[$ 6MAKE PA/
  S]VICE 3TRIBU;NS--SUBSEC;N
  #AH7#AA7 & P>AGRAPHS
  #ADG.B7#D77A71 7B71 & 7C7 """""""" #AD
,DEDUCTIBIL;Y ( ,A3RU$ & ,9/AL;T
  ,9T]E/ """""""""""""""""""""" #AE1 #AF
,GLOSS>Y """"""""""""""""""""""""""" #AG
  7A7 ,A4I;NAL VOLUNT>Y 3TRIBU;N
  7B7 ,DEF9$ B5EFIT PROVI.N
  7C7 ,EMPLOYEE
  7D7 ,M"OY PUR*ASE PROVI.N
  7E7 ,REGI/]$ P5.N PLAN
  7F7 ,YE>
,APP5DIX--,EXAMPLES

                                      #E
          ,4CUS.N & ,9T]PRET,N        #B
              ,G5]AL -;TS
    
#A4 ,9 -PUT+ 9COME =A TAX,N YE> AF #AIIJ
  F AN (FICE OR EMPLOY;T1 AN EMPLOYEE IS
  5TITL$ "U P>AGRAPH #H7#A77M7 6DEDUCT
  3TRIBU;NS MADE 9 ! YE> 6AN ,,RPP T >E
  DEDUCTI# 0R1SON ( SUBSEC;N #ADG.B7#D74
#B4 ,"! >E SEP>ATE LIMITS "U SUBSEC;N
  #ADG.B7#D7 =! DEDUCTIBIL;Y ( AN
  EMPLOYEE'S P5.N 3TRIBU;NS =A TAX,N YE>
  5D+ AF #AIIJ 9 RESPECT (3
  --CURR5T S]VICE = YE>S ( S]VICE AF
    #AIHI & PA/ S]VICE = YE>S ( S]VICE
    AF #AIHI 7SEE #C 2L71
  --PA/ S]VICE = YE>S ( S]VICE 2F #AIIJ
    DUR+ : AN EMPLOYEE 0 N A 3TRIBUTOR
    6AN ,,RPP1 7SEE #D 6#F71 &
  --PA/ S]VICE = YE>S ( S]VICE 2F #AIIJ
    DUR+ : AN EMPLOYEE 0 A 3TRIBUTOR 6AN
    ,,RPP AL;G ) PRE-#AIIJ CURR5T S]VICE
    9 RESPECT ( 3TRIBU;NS : H N BE5
    DEDUCT$ 9 A PREVI\S YE> 7SEE #G & #H
    2L74
                                      #F
      ,EMPLOYEE 3TRIBU;NS = CURR5T   A#B
    S]VICE & PO/-#AIHI PA/ S]VICE--
         P>AGRAPH #ADG.B7#D77A7
    
#C4 ,EMPLOYEE 3TRIBU;NS MADE 9 A TAX,N
  YE> AF #AIIJ "U A DEF9$ B5EFIT PROVI.N
  ( AN ,,RPP OR A M"OY PUR*ASE PROVI.N (
  AN ,,RPP >E DEDUCTI# 9 -PUT+ 9COME 9 T
  YE> "U P>AGRAPH #ADG.B7#D77A7 IF !Y >E
  MADE 9 A3ORD.E )! T]MS (! PLAN Z
  REGI/]$4 ,? APPLIES :E!R ! 3TRIBU;N IS
  = CURR5T S]VICE AF #AIHI OR = PA/
  S]VICE AF #AIHI & :E!R X IS A REQUIR$
  OR OP;NAL 3TRIBU;N4 ,! 3DI;N T
  3TRIBU;NS 2 MADE 9 A3ORD.E )! T]MS (!
  PLAN Z REGI/]$ E6ECTIVELY LIMITS !
  AM.T ( 3TRIBU;NS T C 2 DEDUCT$ 9 A
  YE>4






                                      #G
       ,EMPLOYEE 3TRIBU;NS = PRE-    B#B
       L#IIJ PA/ S]VICE :ILE N A
   3TRIBUTOR--P>AGRAPH #ADG.B7#D77B7
    
#D4 ,AN EMPLOYEE'S DEDUC;N "U P>AGRAPH
  #ADG.B7#D77B7 = PA/ S]VICE 3TRIBU;NS
  ..:ILE N A .3TRIBUTOR 6ANY ,,RPP 9 A
  8YE>0 7SEE ! DEF9I;N ( 8YE>0 9 7F7 (!
  ,GLOSS>Y7 IS LIMIT$ 6! .L1/ (3
  7A7 ! AM.T (! 3TRIBU;NS1 7O!R ?AN
    ,,AVC'S & PRESCRIB$ 3TRIBU;NS71 MADE
    0! EMPLOYEE 9 ! YE> OR A PREVI\S YE>
    AF #AIDE & 9 RESPECT (A YE> 2F #AIIJ
    9 : ! EMPLOYEE 0 N A 3TRIBUTOR1 =
    ELIGI# S]VICE "U AN ,,RPP1 M9US
    DEDUC;NS PREVI\SLY CLAIM$ = ^?
    3TRIBU;NS1
  7B7 4#C1EJJ1 &
  7C7 7;I7 4#C1EJJ = EA* YE> ( ELIGI#
    S]VICE 2F #AIIJ 9 : ! EMPLOYEE 0 N A
    3TRIBUTOR "U AN ,,RPP & 6: !
    EMPLOYEE HAS MADE PA/ S]VICE
    3TRIBU;NS DEDUCTI# "U P>AGRAPH
    #ADG.B7#D77B71
  .M9US3                              #H
             ,,IT-#AFG;,R#F          C#B
    7;II7 DEDUC;NS PREVI\SLY CLAIM$ = ^?
      3TRIBU;NS1 &
    7;III7 DEDUC;NS CLAIM$ "U =M]
      SUBP>AGRAPH #H7#A77M77;II7 Z X R1D
      =! #AIIJ TAX,N YE> = ,,AVC'S4
  ,AT ! "T ? BULLET9 0 PR9T$1 "! 0 NO
  8PRESCRIB$ 3TRIBU;N0 "U ! ,REGUL,NS 9
  REL,N 6SUBSEC;N #ADG.B7#D77B74

  ,! ABV DEDUC;N IS 9 A4I;N 6ANY DEDUC;N
  = 3TRIBU;NS "U P>AGRAPH #ADG.B7#D77A7
  DESCRIB$ 9 #C ABV4 ,IF AN EMPLOYEE HAS
  BE5 3TRIBUT+ 6M ?AN "O ,,RPP = PRE-
  #AIIJ PA/ S]VICE :ILE N A 3TRIBUTOR1 !
  MAXIMUM DEDUC;N =! YE> = ALL S*
  3TRIBU;NS IS 4#C1EJJ4 ,NOTE T PA/
  S]VICE ,,AVC'S 9 RESPECT ( PRE-#AIIJ
  S]VICE _C 2 DEDUCT$4

,NOTE3
  ,9 DRAFT LEGISL,N REL1S$ 0! ,M9I/] (
  ,F9.E ON ,APRIL #BF1 #AIIE1 X IS
  PROPOS$ T SUBP>AGRAPH
  #ADG.B7#D77B77;III7 2 AM5D$         #I
             ,,IT-#AFG;,R#F          D#B
  6CL>IFY T ONLY PA/ S]VICE ,,AVC'S
  DEDUCT$ ..= TAX,N YE>S 2F .#AIHG "U
  =M] SUBP>AGRAPH #H7#A77M77;II71 ..Z X
  R1D 9 ! YE> 9 : ! DEDUC;NS 7 .CLAIM$1
  %D 2 SUBTRACT$ 9 ! ABV-M5;N$ =MULA "U
  7C77;III74 ,SUBP>AGRAPH #H7#A77M77;II7
  DID N ALL[ PA/ S]VICE ,,AVC'S 6BE
  DEDUCT$ AF #AIHF4 ,? AM5D;T1 IF 5ACT$
  Z PROPOS$1 W APPLY 6#AIIA & LAT] TAX,N
  YE>S4

#E4 ,SUBCLAUSES
  #ADG.B7#D77B77;I77,A77,I7 & 7,,II7
  PROVIDE T A 3TRIBU;N = PA/ S]VICES 2F
  #AIIJ ..:ILE N A .3TRIBUTOR W QUALIFY
  Z S* ONLY IF3
  7A7 ! EMPLOYEE 0 N A 3TRIBUTOR 6.ANY
    ,,RPP DUR+ ! YE> = : ! PA/ S]VICE
    3TRIBU;N IS MADE2 OR
  7B7 S* PA/ S]VICE 3TRIBU;NS 7 MADE 2F
    ,M>* #BH1 #AIHH1 OR MADE ON OR AF T
    DATE "U A WRITT5 AGREE;T 5T]$ 962F T
    DATE4
                                     #AJ
             ,,IT-#AFG;,R#F          E#B
  ,IF 7B7 APPLIES1 ! LIMITS 9 P>AGRAPH
  #ADG.B7#D77B7 APPLY 6PA/ S]VICE
  3TRIBU;NS 6! "PICUL> PLAN "U : OR )
  RESPECT 6: ! AGREE;T 0 MADE4
#F4 ,IF AN EMPLOYEE'S 3TRIBU;NS 9 A
  TAX,N YE> 6AN ,,RPP = PRE-#AIIJ PA/
  S]VICES ..:ILE N A .3TRIBUTOR EXCE$S !
  MAXIMUM DEDUC;N ( 4#C1EJJ1 ! EXCESS
  MAY 2 C>RI$ =W>D & CLAIM$ 9 A
  SUBSEQU5T YE>1 SUBJECT 6! CEIL+
  DESCRIB$ 9 #D ABV4

  ,= AN EXAMPLE (! ALL[A# DEDUC;N = PA/
  S]VICE 3TRIBU;NS :ILE N A 3TRIBUTOR1
  SEE ,EXAMPLE ;,A 9 ! ,APP5DIX4
--------------------------------------#C
    ,EMPLOYEE 3TRIBU;NS = PRE-#AIIJ
   S]VICE :ILE A 3TRIBUTOR--P>AGRAPH
             #ADG.B7#D77C7
    
#G4 ,A DEDUC;N =A 3TRIBU;N = PA/ S]VICE
  2F #AIIJ :ILE ! EMPLOYEE 0 A 3TRIBUTOR
  6AN ,,RPP IS AVAILA# "U P>AGRAPH
  #ADG.B7#D77C74 ,? 9CLUDES AM.TS    #AA
             ,,IT-#AFG;,R#F          A#C
  = PRE-#AIIJ CURR5T S]VICE 3TRIBU;NS T
  7 MADE 6AN ,,RPP 0! EMPLOYEE & 7 N
  DEDUCT$ =A PREC$+ TAX,N YE>4 ,!
  MAXIMUM DEDUC;N T AN EMPLOYEE MAY
  CLAIM =A YE> "U P>AGRAPH #ADG.B7#D77C7
  IS EQUAL 6! .LESS] (3
  7A7 ! AM.T (! 3TRIBU;NS 7O!R ?AN
    ,,AVC'S1 PRESCRIB$ 3TRIBU;NS &
    3TRIBU;NS = PRE-#AIIJ PA/ S]VICE
    :ILE N A 3TRIBUTOR7 MADE 0! EMPLOYEE
    9 ! YE> OR A PREC$+ YE> 7AF #AIFB7 =
    ELIGI# S]VICE "U AN ,,RPP 9 RESPECT
    (A YE> 2F #AIIJ1 M9US DEDUC;NS
    PREVI\SLY CLAIM$ = ^? 3TRIBU;NS2 &
  7B7 4#C1EJJ M9US ! TOTAL ( AM.TS
    DEDUCT$ =! YE> = CURR5T S]VICE &
    PO/-#AIHI PA/ S]VICE 3TRIBU;NS &
    PRE-#AIIJ PA/ S]VICE 3TRIBU;NS :ILE
    N A 3TRIBUTOR4
  
  ,AT ! "T ? BULLET9 0 PR9T$1 "! 0 NO
  8PRESCRIB$ 3TRIBU;N0 "U ! ,REGUL,NS 9
  REL,N 6SUBSEC;N #ADG.B7#D77C74
                                     #AB
             ,,IT-#AFG;,R#F          B#C
#H4 ,IF AN EMPLOYEE HAS MADE 3TRIBU;NS
  7Z DESCRIB$ 9 #G ABV7 9 ! YE> OR A
  PREC$+ YE> = PRE-#AIIJ ELIGI# S]VICE
  6M ?AN "O ,,RPP1 ! MAXIMUM DEDUC;N T
  MAY 2 CLAIM$ 9 ! YE> "U P>AGRAPH
  #ADG.B7#D77C7 IS3
  --4#C1EJJ
  .M9US3
  --! TOTAL AM.T DEDUCT$ 9 ! YE> =
    3TRIBU;NS 6ALL PLANS =3
    --CURR5T S]VICE2
    --PO/-#AIHI PA/ S]VICE2 &
    --PRE-#AIIJ PA/ S]VICE :ILE N A
      3TRIBUTOR4
  ,ANY EXCESS RESULT+ F ? LIMIT,N MAY 2
  C>RI$ =W>D & DEDUCT$ 9 A SUBSEQU5T
  YE>1 B SUBJECT 6! SAME LIMIT,N
  DESCRIB$ ABV4 ,X FOLL[S T ANY EXCESS
  C>RI$ =W>D M/ 2 DEF]R$ UNTIL A YE> :5
  ! -B9$ DEDUC;N IS LESS ?AN 4#C1EJJ =3
  --CURR5T S]VICE2
  --PO/-#AIHI PA/ S]VICE2 &
  --PRE-#AIIJ PA/ S]VICE :ILE ! EMPLOYEE
    0 N A 3TRIBUTOR4                 #AC
             ,,IT-#AFG;,R#F          C#C
  ,AT T "T1 A DEDUC;N MAY 2 CLAIM$ N
  EXCE$+3
  --4#C1EJJ2
  .M9US3
  --! AM.T1 IF ANY1 (! TWO O!R ,,RPP
    DEDUC;NS "U P>AGRAPHS #ADG.B7#D77A7
    & 7B7 =! YE>4
  
  ,= AN EXAMPLE (! ALL[A# DEDUC;N = PA/
  S]VICE 3TRIBU;NS :ILE A 3TRIBUTOR1 SEE
  ,EXAMPLE ;,B 9 ! ,APP5DIX4

     8,PA/ S]VICE0--YE> ( D1? ( AN
                EMPLOYEE
    
#I4 ,": AN EMPLOYEE DIES & HAS A BAL.E (
  PA/ S]VICE 3TRIBU;NS REMA9+ 6BE C>RI$
  =W>D F PRIOR YE>S1 A DEDUC;N "U
  P>AGRAPHS #ADG.B7#D77B7 OR
  #ADG.B7#D77C7 MAY 2 CLAIM$ ON !
  DEC1S$'S F9AL 9COME TAX RETURN =! YE>
  ( D1?4 ,A DEDUC;N MAY AL 2 CLAIM$ ON !
  DEC1S$'S F9AL RETURN =! YE> ( D1? "U
  P>AGRAPH #ADG.B7#D77C7 9 RESPECT   #AD
             ,,IT-#AFG;,R#F          D#C
  ( UNDEDUCT$ PRE-#AIIJ CURR5T S]VICE
  3TRIBU;NS MADE 0! EMPLOYEE4 ,H["E1 ANY
  REMA9+ 3TRIBU;NS1 : CD N 2 DEDUCT$ ON
  ! DEC1S$'S F9AL RETURN =! YE> ( D1?1
  WD REMA9 UNDEDUCTI#4

,NOTE3
  ,9 DRAFT LEGISL,N REL1S$ 0! ,M9I/] (
  ,F9.E ON ,APRIL #BF1 #AIIE1 X IS
  PROPOS$ T NEW SUBSEC;N #ADG.B7#F7 W
  PROVIDE A SPECIAL RULE = DEDUCTI#
  ,,RPP 3TRIBU;NS :5 AN 9DIVIDUAL DIES4
  ,IF A TAXPAY] DIES 9 A TAX,N YE>1 9
  -PUT+ ! DEC1S$'S 9COME =! YE> ( D1? OR
  ! IMMLY PREC$+ YE>1 ! DEC1S$'S LEGAL
  REPRES5TATIVE MAY 2 5TITL$ 6DEDUCT !
  DEC1S$ 9DIVIDUAL'S PREVI\SLY UNDEDUCT$
  ,,RPP 3TRIBU;NS1 )\T REG>D 6! 4#C1EJJ
  ANNUAL LIMITS SPECIFI$ 9 SUBP>AGRAPHS
  #ADG.B7#D77B77;II7 & 7C77;II74 ,!
  A4I;N ( SUBSEC;N #ADG.B7#F71 IF 5ACT$
  Z PROPOS$1 W APPLY 69DIVIDUALS :O DIE
  AF #AIIB4
                                     #AE
      ,T1*]S--SUBSEC;N #ADG.B7#E7    E#C
    
#AJ4 ,=! #AIIA 6#AIID TAX,N YE>S1 A T1*]
  :O IS EMPLOY$ 0,H] ,MAJE/Y OR 0AN
  ORGANIZ,N EXEMPT F TAX =! YE> "U SEC;N
  #ADI1 S* Z A S*OOL BO>D1 IS 5TITL$ "U
  SUBSEC;N #ADG.B7#E7 6DEDUCT 3TRIBU;NS
  = PA/ S]VICES1 9 A3ORD.E )! RULE
  SPECIFI$ 9 #D ABV1 EV5 ?\< ! PA/
  S]VICES RELATE 6A YE> :ILE ! T1*] 0 A
  3TRIBUTOR 6A P5.N PLAN4 ,? 5A#S A T1*]
  6TAKE ADVANTAGE (! A4I;NAL ANNUAL
  DEDUC;N ( 4#C1EJJ PROVID$ 0P>AGRAPH
  #ADG.B7#D77B74 ,NORM,Y 9 S*
  CIRCUM/.ES1 ! RULE 9 #G ABV WD 2
  APPLICA#4 ,? PROVI.N IS B5EFICIAL 6A
  T1*] :O PREVI\SLY GAVE UP EMPLOY;T )
  ,H] ,MAJE/Y OR A TAX-EXEMPT ORGANIZ,N
  & )DREW ALL 3TRIBU;NS 6! P5.N PLAN AT
  T "T & HAS S9CE RESUM$ S* EMPLOY;T &
  WI%ES 6BE RE9/AT$ "U ! PLAN 0RETURN+ !
  3TRIBU;NS4 ,SUBSEC;N #ADG.B7#E7 C1SES
  6APPLY AF #AIID4

                                     #AF
       ,NON-DEDUCTI# 3TRIBU;NS--     F#C
       SUBP>AGRAPH #EF7#A77A77;I7
    
#AA4 ,G5],Y1 ANY AM.T RCVD \ ( OR "U AN
  ,,RPP M/ 2 9CLUD$ 9 9COME EV5 ?\< AN
  AM.T 3TRIBUT$ 6! PLAN MAY N H BE5
  DEDUCTI# 2C X 0 9 EXCESS (! ALL[A#
  DEDUC;NS DESCRIB$ ABV4
--------------------------------------#D
    ,DEDUC;N 0EX-EMPLOYEE--SUBSEC;N
               #ADG.B7#D7
    
#AB4 ,": AN EMPLOYEE 7SEE ! DEF9I;N (
  8EMPLOYEE0 9 7C7 (! ,GLOSS>Y7 IS
  5TITL$ 6C>RY =W>D A 3TRIBU;N = DEDUC;N
  9 A SUBSEQU5T YE>1 ! 5TITLE;T 6S* A
  DEDUC;N IS N A6ECT$ 0! FACT T1 9 ! YE>
  :5 ! DEDUC;N IS CLAIM$1 ! EMPLOYEE IS
  NO L;G] 9 ! SAME EMPLOY;T OR IS N
  EMPLOY$ AT ALL4




                                     #AG
      ,9T]E/ ON M"OY BORR[$ 6MAKE    A#D
   CURR5T S]VICE 3TRIBU;NS--SUBSEC;N
   #AH7#AA7 & P>AGRAPH #ADG.B7#D77A7
    
#AC4 ,SUBSEC;N #AH7#AA7 PROHIBITS A
  DEDUC;N = 9T]E/ & O!R F9ANC+ CO/S 9
  RESPECT ( BORR[$ M"OY US$ 0AN EMPLOYEE
  6MAKE A CURR5T S]VICE 3TRIBU;N 6AN
  ,,RPP AF ,NOVEMB] #AB1 #AIHA4

    ,9T]E/ ON M"OY BORR[$ 6MAKE PA/
       S]VICE 3TRIBU;NS--SUBSEC;N
          #AH7#AA7 & P>AGRAPHS
       #ADG.B7#D77A71 7B71 & 7C7
    
#AD4 ,G5],Y1 A DEDUC;N = 9T]E/ & O!R
  F9ANC+ CO/S 9 RESPECT ( BORR[$ M"OY
  US$ 0AN EMPLOYEE 6MAKE PA/ S]VICE
  3TRIBU;NS 6AN ,,RPP AF ,NOVEMB] #AB1
  #AIHA1 IS PROHIBIT$ 0SUBSEC;N
  #AH7#AA71 ) "O EXCEP;N4 ,A DEDUC;N IS
  AVAILA# 6AN EMPLOYEE = S* CO/S 9
  RESPECT ( BORR[$ M"OY US$ 6MAKE PA/
  S]VICE 3TRIBU;NS 7DESCRIB$ 9
  SUBP>AGRAPHS #H7#A77M77;II7 &      #AH
             ,,IT-#AFG;,R#F          B#D
  7;III7 Z !Y APPLY 6! #AIIJ TAX,N YE>7
  IF ! 3TRIBU;NS >E REQUIR$ 6BE MADE "U
  AN OBLIG,N 5T]$ 962F ,NOVEMB] #AC1
  #AIHA4

        ,DEDUCTIBIL;Y ( ,A3RU$ &
             ,9/AL;T ,9T]E/
    
#AE4 ,IF A PA/ S]VICE 3TRIBU;N 6A DEF9$
  B5EFIT PLAN IS PD 9 9/AL;TS1 EA*
  9/AL;T PAY;T W NORM,Y 3SI/ (! BASIC
  3TRIBU;N =! PA/ S]VICES1 A3RU$ 9T]E/
  79T]E/ T WD H BE5 PAYA# _H ! PA/
  S]VICE 3TRIBU;N BE5 MADE 9 A LUMP SUM7
  & AN 9/AL;T 9T]E/ *>GE4 ,Z A RESULT (!
  ,TAX ,C\RT ( ,CANADA CASE1 ,>?UR ,E4
  ,WALTON V4 ,! ,M9I/] ( ,N,NAL ,REV5UE1
  #HI ,,DTC #DBC1 #AIHI ,,CTC #BCCE1 !
  FOLL[+ APPLIES3
  7A7 ,=! #AIHI & SUBSEQU5T TAX,N YE>S
    &) RESPECT 6BO? A3RU$ 9T]E/ & 9/AL;T
    9T]E/ *>GES PD 9 ! YE>1 S* AM.TS >E
    3SID]$ 6BE "P (! P5.N 3TRIBU;N4 ,S*
                                     #AI
             ,,IT-#AFG;,R#F          C#D
    3TRIBU;NS >E DEDUCTI# SUBJECT 6!
    LIMIT,NS 9 SUBSEC;N #ADG.B7#D74
  7B7 ,= #AIIA & SUBSEQU5T TAX,N YE>S1
    ANY REMA9+ NON-DEDUCTI# 9/AL;T 9T]E/
    *>GES = YE>S PRIOR 6#AIHI MAY 2
    C>RI$ =W>D & DEDUCT$ "U P>AGRAPHS
    #ADG.B7#D77B7 OR 7C71 Z ! CASE MAY
    BE1 SUBJECT 6! LIMIT,NS /AT$ "!94
#AF4 ,IF AN ELEC;N 6BUY BACK PA/ S]VICE
  0WAY ( 9/AL;TS "U A DEF9$ B5EFIT
  PROVI.N 0 MADE ..2F ,NOVEMB] #AC1
  .#AIHA1 = ..#AIHG & SUBSEQU5T TAX,N
  .YE>S1 ! -;TS 9 #AE D N APPLY &!
  FOLL[+ APPLIES = #AIHG & SUBSEQU5T
  TAX,N YE>S3
  7A7 ,) RESPECT 6.9/AL;T .9T]E/1 !
    EMPLOYEE HAS ! *OICE ( DEDUCT+ !
    AM.T Z EI3
    7;I7 9T]E/ : IS DEDUCTI# 9 ! YE> PD2
      OR
    7;II7 AN AM.T 3TRIBUT$ 6AN ,,RPP =
      PA/ S]VICES EI :ILE ! EMPLOYEE 0 N
      A 3TRIBUTOR OR :ILE ! EMPLOYEE 0 A
      3TRIBUTOR 7: IS DEDUCTI# 9 !   #BJ
             ,,IT-#AFG;,R#F          D#D
      YE> OR 9 A SUBSEQU5T YE> 9 A3ORD.E
      ) EI P>AGRAPH #ADG.B7#D77B7 OR
      7C71 RESPECTIVELY47
  7B7 ,) RESPECT 6.A3RU$ .9T]E/1 ! AM.T
    IS DEDUCTI# Z DESCRIB$ 9 7;II7 ABV4
    ,! 9COME TAX GUIDE CALL$ ,,RRSP'S &
    ,O!R ,REGI/]$ ,PLANS = ,RETIRE;T HAS
    A4I;NAL -;TS ON ? SUBJECT4
  
                ,GLOSS>Y
    
#AG4 ,! T]MS US$ "?\T ? BULLET9 >E DEF9$
  Z FOLL[S3
  7A7 ,A4I;NAL VOLUNT>Y 3TRIBU;N--,AN
    8A4I;NAL VOLUNT>Y 3TRIBU;N0 6AN
    ,,RPP M1NS A 3TRIBU;N MADE 0A MEMB]
    6! PLAN1 T IS US$ 6PROVIDE B5EFITS
    "U A M"OY PUR*ASE PROVI.N 7SEE 7D7
    2L7 (! PLAN & T IS N REQUIR$ Z A
    G5]AL 3DI;N ( MEMB]%IP 9 ! PLAN4
    7SUBSEC;N #BDH7#A77
  7B7 ,DEF9$ B5EFIT PROVI.N--,DEF9$
    B5EFIT PROVI.N M1NS ! T]MS (! P5.N
    PLAN "U : ! B5EFITS = EA*        #BA
             ,,IT-#AFG;,R#F          E#D
    MEMB] >E DET]M9$ 9 ANY WAY O!R ?AN T
    DESCRIB$ 9 ! EXPLAN,N ( 8M"OY
    PUR*ASE PROVI.N0 9 7D7 2L4 ,"U !
    T]MS (A DEF9$ B5EFIT PROVI.N ( AN
    ,,RPP1 A C]TA9 LEVEL ( RETIRE;T
    B5EFITS1 DET]M9$ 0A =MULA1 IS
    PROMIS$4 ,! EMPLOYEE'S 3TRIBU;NS1 IF
    ANY1 >E PREDET]M9$2 H["E1 ! EMPLOY]
    WD G5],Y 3TRIBUTE :AT"E IS REQUIR$
    65SURE ! PROVI.N (! PROMIS$ RETIRE;T
    B5EFITS4 7SUBSEC;N #ADG.A7#A77
  7C7 ,EMPLOYEE--,Z PROVID$ 9 SUBSEC;N
    #HEJJ7#D7 (! ,REGUL,NS1 ANY REF];E 9
    ? BULLET9 TO 8EMPLOYEE0 MAY 2 R1D Z
    9CLUD+ AN 8(FIC]0 9ASM* Z A P5.N
    PLAN A3EPT$ = REGI/R,N MAY 9CLUDE OR
    2 RE/RICT$ 6(FIC]S Z IS1 = EXAMPLE1
    ! P5.N PLAN E/ABLI%$ = ,MEMB]S (
    ,P>LIA;T4
  7D7 ,M"OY PUR*ASE PROVI.N--,EMPLOY] &
    EMPLOYEE 3TRIBU;NS & 9VE/;T E>N+S
    "!ON 9 EA* MEMB]'S SEP>ATE A3.T
    DET]M9E ! P5.N B5EFITS T C 2 PUR*AS$
    =! EMPLOYEE AT RETIRE;T4 ,"!     #BB
             ,,IT-#AFG;,R#F          F#D
    IS NO PROMISE T A C]TA9 LEVEL (
    RETIRE;T B5EFITS W 2 PROVID$ & NO
    UNC]TA9TY REG>D+ ! EMPLOY]'S
    F9ANCIAL OBLIG,N 6! PLAN4 7SUBSEC;N
    #ADG.A7#A77
--------------------------------------#E
  7E7 ,REGI/]$ P5.N PLAN--,? IS DEF9$ 9
    SUBSEC;N #BDH7#A7 Z A P5.N PLAN T
    HAS BE5 REGI/]$ 0! ,M9I/] =!
    PURPOSES (! ,9COME ,TAX ,ACT1
    PROVID$ ! REGI/R,N HAS N BE5 REVOK$4
    ,AN ,,RPP MAY 2 A PLAN T 9CLUDES
    DEF9$ B5EFIT PROVI.NS1 M"OY PUR*ASE
    PROVI.NS OR A PLAN T 9CLUDES A -B9,N
    ( BO? TYPES ( PROVI.NS4
  7F7 ,YE>--,=! PURPOSES ( P>AGRAPH
    #ADG.B7#D77B71 A 8YE>0 M1NS A CAL5D>
    YE> Z 4T9CT F ! FISCAL P]IOD (!
    EMPLOY]1 : MAY N CO9CIDE )! CAL5D>
    YE>4 ,EA* CAL5D> YE> 9 : ! EMPLOYEE
    R5D]$ S]VICE1 EV5 = Z LL Z "O "D1 IS
    6BE C.T$ Z "O YE>4 ,IF1 AT ANY "T 9
    A PA/ YE>1 AN EMPLOYEE MADE AN
    ALL[A# 3TRIBU;N 6.ANY ,,RPP1     #BC
             ,,IT-#AFG;,R#F          A#E
    SUBJECT 6! EXCEP;N 9 P>AGRAPH #AJ (
    ? BULLET91 T YE> DOES N C.T Z A NON-
    3TRIBUTORY YE>4
  
  ,IF Y H ANY -;TS REG>D+ ! MATT]S
4CUSS$ 9 ? BULLET91 PL1SE S5D !M TO3
  ,DIRECTOR1 ,TE*NICAL ,PUBLIC,NS
    ,DIVI.N
  ,POLICY & ,LEGISL,N ,BRAN*
  ,REV5UE ,CANADA
  #HGE ,H]ON ,ROAD
  ,OTTAWA ,,ON
  ,K#A;,A #J;,L#H










                                     #BD
          ,APP5DIX--,EXAMPLES         #F
    ,EXAMPLE ;,A--,PA/ ,S]VICE ,:ILE
       ,N A ,3TRIBUTOR 7,P>AGRAPH
             #ADG.B7#D77B77
    
  ,9 #AIIA1 A MEMB] MADE A 4#AB1JJJ
3TRIBU;N 9 RESPECT ( PA/ S]VICE = S]VICE
! MEMB] P]=M$ = #C YE>S 2F #AIIJ "?\T :
! MEMB] 0 N A 3TRIBUTOR 6ANY ,,RPP4 ,!
MEMB] MAY DEDUCT ! FOLL[+ "U P>AGRAPH
#ADG.B7#D77B7 = EA* (! YE>S 9DICAT$3

#AIIA3 4#C1EJJ1 : IS ! L1/ (3
  --4#AB1JJJ M9US 4#J EQUALS 4#AB1JJJ 7!
    AM.T (! MEMB]'S 3TRIBU;NS1 .M9US
    DEDUC;NS PREVI\SLY CLAIM$ = ^?
    3TRIBU;NS71
  --4#C1EJJ1 ! ANNUAL LIMIT1 &
  --4#AJ1EJJ 74#C1EJJ MULTIPLI$ 0#C
    YE>S7 M9US 4#J EQUALS 4#AJ1EJJ
    74#C1EJJ = EA* YE> ( ELIGI# S]VICE
    2F #AIIJ 9 : ! EMPLOYEE 0 N A
    3TRIBUTOR "U AN ,,RPP & 6: !
    EMPLOYEE HAS MADE PA/ S]VICE
    3TRIBU;NS DEDUCTI# "U P>AGRAPH   #BE
             ,,IT-#AFG;,R#F          A#F
    #ADG.B7#D77B71 .M9US DEDUC;NS
    PREVI\SLY CLAIM$ = ^? 3TRIBU;NS &
    .M9US DEDUC;NS CLAIM$ "U =M]
    SUBP>AGRAPH #H7#A77M77;II7 Z X R1D
    =! #AIIJ TAX,N YE> = ,,AVC'S47
#AIIB3 4#C1EJJ1 : IS ! L1/ (3
  --4#AB1JJJ M9US 4#C1EJJ DEDUCT$ =
    #AIIA EQUALS 4#H1EJJ1
  --4#C1EJJ1 &
  --4#AJ1EJJ 74#C1EJJ MULTIPLI$ 0#C7
    M9US 4#C1EJJ DEDUCT$ = #AIIA EQUALS
    4#G1JJJ4
#AIIC3 4#C1EJJ1 : IS ! L1/ (3
  --4#AB1JJJ M9US 4#G1JJJ 74#C1EJJ
    DEDUCT$ = EA* ( #AIIA & #AIIB7
    EQUALS 4#E1JJJ1
  --4#C1EJJ1 &
  --4#AJ1EJJ 74#C1EJJ MULTIPLI$ 0#C7
    M9US 4#G1JJJ 74#C1EJJ DEDUCT$ = EA*
    ( #AIIA & #AIIB7 EQUALS 4#C1EJJ4
#AIID3 4#J1 : IS ! L1/ (3
  --4#AB1JJJ M9US 4#AJ1EJJ 74#C1EJJ
    DEDUCT$ = EA* ( #AIIA1 #AIIB1 &
    #AIIC7 EQUALS 4#A1EJJ1           #BF
             ,,IT-#AFG;,R#F          B#F
  --4#C1EJJ1 &
  --4#AJ1EJJ 74#C1EJJ MULTIPLI$ 0#C7
    M9US 4#AJ1EJJ 74#C1EJJ DEDUCT$ = EA*
    ( #AIIA1 #AIIB1 & #AIIC7 EQUALS 4#J4
  
  ,(! 3TRIBU;N ( 4#AB1JJJ1 ! MEMB] C
ONLY DEDUCT A MAXIMUM TOTAL ( 4#AJ1EJJ
74#C1EJJ MULTIPLI$ 0#C YE>S EQUALS
4#AJ1EJJ74 ,! REMA9+ 4#A1EJJ _C 2
DEDUCT$4

       ,EXAMPLE ;,B--,PA/ ,S]VICE
     ,:ILE A ,3TRIBUTOR 7,P>AGRAPH
             #ADG.B7#D77C77
    
  ,A MEMB] PAYS 4#B1JJJ A YE> 9 RESPECT
( CURR5T S]VICE4 ,9 #AIIB1 ! MEMB] PD
4#E1BJJ 9 RESPECT ( PA/ S]VICE 2F #AIIJ
= S]VICE ! MEMB] P]=M$ = #B YE>S "?\T :
! MEMB] 0 N A 3TRIBUTOR 6ANY ,,RPP4 ,9
#AIIB1 ! MEMB] AL PD 4#D1HJJ 9 RESPECT (
PA/ S]VICE 2F #AIIJ = S]VICE ! MEMB]
P]=M$ = #C YE>S :ILE ! MEMB] 0 A
3TRIBUTOR 6AN ,,RPP4 ,NO ,,AVC'S H   #BG
             ,,IT-#AFG;,R#F          C#F
BE5 MADE4 ,! MEMB] MAY DEDUCT ! FOLL[+ =
EA* (! YE>S 9DICAT$3

#AIIB3 ,! MEMB] C DEDUCT 4#E1EJJ1 3SI/+
  ( CURR5T S]VICE ( 4#B1JJJ & PA/ S]VICE
  3TRIBU;NS :ILE N A 3TRIBUTOR (
  4#C1EJJ3
  --CURR5T S]VICE3 4#B1JJJ
  --PA/ S]VICE :ILE N A 3TRIBUTOR3
    4#C1EJJ1 : IS ! L1/ (3
    --4#E1BJJ M9US 4#J EQUALS 4#E1BJJ 7!
      AM.T (! MEMB]'S 3TRIBU;NS1 .M9US
      DEDUC;NS PREVI\SLY CLAIM$ = ^?
      3TRIBU;NS71
    --4#C1EJJ1 ! ANNUAL LIMIT1 &
    --74#C1EJJ MULTIPLI$ 0#B YE>S7 M9US
      4#J EQUALS 4#G1JJJ 74#C1EJJ = EA*
      YE> ( ELIGI# S]VICE 2F #AIIJ 9 : !
      EMPLOYEE 0 N A 3TRIBUTOR "U AN
      ,,RPP & 6: ! EMPLOYEE HAS MADE PA/
      S]VICE 3TRIBU;NS DEDUCTI# "U
      P>AGRAPH #ADG.B7#D77B71 .M9US
      DEDUC;NS PREVI\SLY CLAIM$ = ^?
      3TRIBU;NS47                    #BH
             ,,IT-#AFG;,R#F          D#F
  --PA/ S]VICE :ILE A 3TRIBUTOR3 4#J1 :
    IS ! L1/ (3
    --4#D1HJJ M9US 4#J EQUALS 4#D1HJJ 7!
      AM.T (! 3TRIBU;NS 7O!R ?AN
      ,,AVC'S1 PRESCRIB$ 3TRIBU;NS &
      3TRIBU;NS = PRE-#AIIJ PA/ S]VICE
      :ILE N A 3TRIBUTOR7 MADE 0!
      EMPLOYEE 9 ! YE> OR A PREC$+ YE>
      AF #AIFB7 = ELIGI# S]VICE "U AN
      ,,RPP 9 RESPECT (A YE> 2F #AIIJ1
      .M9US DEDUC;NS PREVI\SLY CLAIM$ =
      ^? 3TRIBU;NS72 &
    --4#C1EJJ M9US 4#B1JJJ M9US 4#J M9US
      4#C1EJJ EQUALS 4#J 74#C1EJJ .M9US
      ! TOTAL ( AM.TS DEDUCT$ = CURR5T
      S]VICE & PO/-#AIHI PA/ S]VICE
      3TRIBU;NS & PRE-#AIIJ PA/ S]VICE
      3TRIBU;NS :ILE N A 3TRIBUTOR74
#AIIC3 ,! MEMB] C DEDUCT 4#C1GJJ1 3SI/+
  ( CURR5T S]VICE ( 4#B1JJJ & PA/ S]VICE
  3TRIBU;NS :ILE N A 3TRIBUTOR (
  4#A1GJJ3
  --CURR5T S]VICE3 4#B1JJJ
                                     #BI
             ,,IT-#AFG;,R#F          E#F
  --PA/ S]VICE :ILE N A 3TRIBUTOR3
    4#A1GJJ1 : IS ! L1/ (3
--------------------------------------#G
    --4#E1BJJ M9US 4#C1EJJ EQUALS
      4#A1GJJ 7! AM.T (! MEMB]'S
      3TRIBU;NS1 .M9US ! DEDUC;N CLAIM$
      ( 4#C1EJJ = #AIIB71
    --4#C1EJJ1 ! ANNUAL LIMIT1 &
    --74#C1EJJ MULTIPLI$ 0#B YE>S7 M9US
      4#C1EJJ EQUALS 4#C1EJJ 74#C1EJJ =
      EA* YE> ( ELIGI# S]VICE 2F #AIIJ 9
      : ! EMPLOYEE 0 N A 3TRIBUTOR "U AN
      ,,RPP & 6: ! EMPLOYEE HAS MADE PA/
      S]VICE 3TRIBU;NS DEDUCTI# "U
      P>AGRAPH #ADG.B7#D77B71 .M9US !
      DEDUC;N ( 4#C1EJJ CLAIM$ = #AIIB47
  --PA/ S]VICE :ILE A 3TRIBUTOR3 4#J1 :
    IS ! L1/ (3
    --4#D1HJJ M9US 4#J EQUALS 4#D1HJJ 7!
      AM.T (! 3TRIBU;NS 7O!R ?AN
      ,,AVC'S1 PRESCRIB$ 3TRIBU;NS &
      3TRIBU;NS = PRE-#AIIJ PA/ S]VICE
      :ILE N A 3TRIBUTOR7 MADE 0!
      EMPLOYEE 9 ! YE> OR A PREC$+   #CJ
             ,,IT-#AFG;,R#F          A#G
      YE> 7AF #AIFB7 = ELIGI# S]VICE "U
      AN ,,RPP 9 RESPECT (A YE> 2F
      #AIIJ1 .M9US DEDUC;NS PREVI\SLY
      CLAIM$ = ^? 3TRIBU;NS72 &
    --4#C1EJJ M9US 4#B1JJJ M9US 4#J M9US
      4#A1GJJ EQUALS 4#J 74#C1EJJ .M9US
      ! TOTAL ( AM.TS DEDUCT$ = CURR5T
      S]VICE & PO/-#AIHI PA/ S]VICE
      3TRIBU;NS & PRE-#AIIJ PA/ S]VICE
      3TRIBU;NS :ILE N A 3TRIBUTOR74
#AIID3 ,! MEMB] C DEDUCT 4#C1EJJ1 3SI/+
  ( CURR5T S]VICE ( 4#B1JJJ & PA/ S]VICE
  3TRIBU;NS :ILE A 3TRIBUTOR ( 4#A1EJJ3
  --CURR5T S]VICE3 4#B1JJJ
  --PA/ S]VICE :ILE N A 3TRIBUTOR3 4#J1
    : IS ! L1/ (3
    --4#E1BJJ M9US 4#E1BJJ EQUALS 4#J 7!
      AM.T (! MEMB]'S 3TRIBU;NS1 .M9US !
      DEDUC;N CLAIM$ ( 4#C1EJJ = #AIIB &
      4#A1GJJ = #AIIC71
    --4#C1EJJ1 ! ANNUAL LIMIT1 &
    --74#C1EJJ MULTIPLI$ 0#B YE>S7 M9US
      4#E1BJJ EQUALS 4#A1HJJ 74#C1EJJ =
      EA* YE> ( ELIGI# S]VICE 2F     #CA
             ,,IT-#AFG;,R#F          B#G
      #AIIJ 9 : ! EMPLOYEE 0 N A
      3TRIBUTOR "U AN ,,RPP & 6: !
      EMPLOYEE HAS MADE PA/ S]VICE
      3TRIBU;NS DEDUCTI# "U P>AGRAPH
      #ADG.B7#D77B71 .M9US ! DEDUC;N (
      4#C1EJJ CLAIM$ = #AIIB & 4#A1GJJ =
      #AIIC47
  --PA/ S]VICE :ILE A 3TRIBUTOR3
    4#A1EJJ1 : IS ! L1/ (3
    --4#D1HJJ M9US 4#J EQUALS 4#D1HJJ 7!
      AM.T (! 3TRIBU;NS 7O!R ?AN
      ,,AVC'S1 PRESCRIB$ 3TRIBU;NS &
      3TRIBU;NS = PRE-#AIIJ PA/ S]VICE
      :ILE N A 3TRIBUTOR7 MADE 0!
      EMPLOYEE 9 ! YE> OR A PREC$+ YE>
      7AF #AIFB7 = ELIGI# S]VICE "U AN
      ,,RPP 9 RESPECT (A YE> 2F #AIIJ1
      .M9US DEDUC;NS PREVI\SLY CLAIM$ =
      ^? 3TRIBU;NS72 &
    --4#C1EJJ M9US 4#B1JJJ M9US 4#J M9US
      4#J EQUALS 4#A1EJJ 74#C1EJJ .M9US
      ! TOTAL ( AM.TS DEDUCT$ = CURR5T
      S]VICE & PO/-#AIHI PA/ S]VICE
      3TRIBU;NS & PRE-#AIIJ PA/      #CB
             ,,IT-#AFG;,R#F          C#G
      S]VICE 3TRIBU;NS :ILE N A
      3TRIBUTOR74
#AIIE3 ,! MEMB] C DEDUCT 4#C1EJJ1 3SI/+
  ( CURR5T S]VICE ( 4#B1JJJ & PA/ S]VICE
  3TRIBU;NS :ILE A 3TRIBUTOR ( 4#A1EJJ3
  --CURR5T S]VICE3 4#B1JJJ
  --PA/ S]VICE :ILE N A 3TRIBUTOR3 4#J4
    ,! PA/ S]VICE 3TRIBU;NS :ILE N A
    3TRIBUTOR ( 4#E1BJJ H BE5 -PLETELY
    DEDUCT$ 9 #AIIB & #AIIC4
  --PA/ S]VICE :ILE A 3TRIBUTOR3
    4#A1EJJ1 : IS ! L1/ (3
    --4#D1HJJ M9US 4#A1EJJ EQUALS
      4#C1CJJ 7! AM.T (! 3TRIBU;NS MADE
      0! EMPLOYEE 9 ! YE> OR A PREC$+
      YE> 7AF #AIFB7 = ELIGI# S]VICE "U
      AN ,,RPP 9 RESPECT (A YE> 2F
      #AIIJ1 .M9US ! DEDUC;N ( 4#A1EJJ
      CLAIM$ = #AIID72 &
    --4#C1EJJ M9US 4#B1JJJ M9US 4#J M9US
      4#J EQUALS 4#A1EJJ 74#C1EJJ .M9US
      ! TOTAL ( AM.TS DEDUCT$ = CURR5T
      S]VICE & PO/-#AIHI PA/ S]VICE
      3TRIBU;NS & PRE-#AIIJ PA/      #CC
             ,,IT-#AFG;,R#F          D#G
      S]VICE 3TRIBU;NS :ILE N A
      3TRIBUTOR74
#AIIF3 ,! MEMB] C DEDUCT 4#C1EJJ1 3SI/+
  ( CURR5T S]VICE ( 4#B1JJJ & PA/ S]VICE
  3TRIBU;NS :ILE A 3TRIBUTOR ( 4#A1EJJ3
  --CURR5T S]VICE3 4#B1JJJ
  --PA/ S]VICE :ILE N A 3TRIBUTOR3 4#J4
    ,! PA/ S]VICE 3TRIBU;NS :ILE N A
    3TRIBUTOR ( 4#E1BJJ H BE5 -PLETELY
    DEDUCT$ 9 #AIIB & #AIIC4
  --PA/ S]VICE :ILE A 3TRIBUTOR3
    4#A1EJJ1 : IS ! L1/ (3
    --4#D1HJJ M9US 4#C1JJJ EQUALS
      4#A1HJJ 7! AM.T (! 3TRIBU;NS MADE
      0! EMPLOYEE 9 ! YE> OR A PREC$+
      YE> 7AF #AIFB7 = ELIGI# S]VICE "U
      AN ,,RPP 9 RESPECT (A YE> 2F
      #AIIJ1 .M9US ! DEDUC;NS ( 4#A1EJJ
      CLAIM$ = EA* ( #AIID & #AIIE72 &
    --4#C1EJJ M9US 4#B1JJJ M9US 4#J M9US
      4#J EQUALS 4#A1EJJ 74#C1EJJ .M9US
      ! TOTAL ( AM.TS DEDUCT$ = CURR5T
      S]VICE & PO/-#AIHI PA/ S]VICE
      3TRIBU;NS & PRE-#AIIJ PA/      #CD
             ,,IT-#AFG;,R#F          E#G
      S]VICE 3TRIBU;NS :ILE N A
      3TRIBUTOR74
#AIIG3 ,! MEMB] C DEDUCT 4#B1CJJ1 3SI/+
  ( CURR5T S]VICE ( 4#B1JJJ & PA/ S]VICE
  3TRIBU;NS :ILE A 3TRIBUTOR ( 4#CJJ3
  --CURR5T S]VICE3 4#B1JJJ
--------------------------------------#H
  --PA/ S]VICE :ILE N A 3TRIBUTOR3 4#J4
    ,! PA/ S]VICE 3TRIBU;NS :ILE N A
    3TRIBUTOR ( 4#E1BJJ H BE5 -PLETELY
    DEDUCT$ 9 #AIIB & #AIIC4
  --PA/ S]VICE :ILE A 3TRIBUTOR3 4#CJJ1
    : IS ! L1/ (3
    --#D1HJJ M9US 4#D1EJJ EQUALS 4#CJJ
      7! AM.T (! 3TRIBU;NS MADE 0!
      EMPLOYEE 9 ! YE> OR A PREC$+ YE>
      7AF #AIFB7 = ELIGI# S]VICE "U AN
      ,,RPP 9 RESPECT (A YE> 2F #AIIJ1
      .M9US ! DEDUC;NS ( 4#A1EJJ CLAIM$
      = EA* ( #AIID1 #AIIE1 & #AIIF72 &
    --4#C1EJJ M9US 4#B1JJJ M9US 4#J M9US
      4#J EQUALS 4#A1EJJ 74#C1EJJ .M9US
      ! TOTAL ( AM.TS DEDUCT$ = CURR5T
      S]VICE & PO/-#AIHI PA/         #CE
             ,,IT-#AFG;,R#F          A#H
      S]VICE 3TRIBU;NS & PRE-#AIIJ PA/
      S]VICE 3TRIBU;NS :ILE N A
      3TRIBUTOR74
    
  ,! PA/ S]VICE 3TRIBU;NS :ILE A
3TRIBUTOR ( 4#D1HJJ H BE5 -PLETELY
DEDUCT$ 9 #AIID1 #AIIE1 #AIIF & #AIIG4
--------------------------------------#I
   ,EXPLAN,NS ( ,*ANGES = ,9T]PRET,N
        ,BULLET9 ,,IT-#AFG;,R#F
         ,REGI/]$ ,P5.N ,PLAN--
         ,EMPLOYEE'S ,3TRIBU;NS
               ,9TRODUC;N
    
  ,! PURPOSE (! ,EXPLAN,N ( ,*ANGES IS
6GIVE ! R1SONS =! REVI.NS 6AN 9T]PRET,N
BULLET94 ,X \TL9ES REVI.NS T WE H MADE Z
A RESULT ( *ANGES 6! LAW1 Z WELL Z
*ANGES REFLECT+ NEW OR REVIS$ DE"P;TAL
9T]PRET,NS4



                                     #CF
                ,OV]VIEW             A#I
    
  ,9T]PRET,N BULLET9 ,,IT-#AFG;,R#F D1LS
)! DEDUCTIBIL;Y .AF .#AIIJ ( 3TRIBU;NS
MADE 0AN EMPLOYEE 6A REGI/]$ P5.N PLAN
7,,RPP74 ,! REVI.NS TO ,,IT-#AFG;,R#E &!
,SPECIAL ,REL1SE DAT$ ,FEBRU>Y #AI1
#AIIJ1 7 "UTAK5 6REFLECT AM5D;TS 6!
,9COME ,TAX ,ACT 0,S4,C4 #AIIJ1 C4 #CE
7=M] ,BILL ;,C-#EB1 : 3TA9$ ! ,P5.N
,RE=M AM5D;TS74 ,? REVI.N AL REFLECTS A
NUMB] ( ,P5.N ,RE=M AM5D;TS 6! ,9COME
,TAX ,REGUL,NS PASS$ ON ,DECEMB] #BC1
#AIIA1 0,P4,C4 #AIIA-BEDJ1 ,,SOR/#IB-EA4
  ,! 3T5TS ( ? BULLET9 >E A6ECT$ 0"S (!
PROPOS$ AM5D;TS 3TA9$ 9 ! ,APRIL #BF1
#AIIE DRAFT LEGISL,N4 ,^! PROPOS$
AM5D;TS >E REFLECT$ 9 NOTES FOLL[+
P>AGRAPHS #D & #I4
  ,! 3T5TS ( ? BULLET9 >E N A6ECT$ 0ANY
O!R DRAFT LEGISL,N REL1S$ 2F ,AUGU/ #AD1
#AIIE4


                                     #CG
      ,LEGISLATIVE & ,O!R ,*ANGES    B#I
    
  ,P>AGRAPH #A 7REPLACES =M] P>AGRAPH
#A7 PROVIDES G5]AL -;TS ON !
DEDUCTIBIL;Y ( EMPLOYEE 3TRIBU;NS 6AN
,,RPP & REFLECTS ! AM5D;T 6P>AGRAPH
#H7#A77M7 &! 9TRODUC;N ( SUBSEC;N
#ADG.B7#D74
  ,P>AGRAPH #B 7REPLACES =M] P>AGRAPH
#B7 BRIEFLY M5;NS ! LIMITS "U SUBSEC;N
#ADG.B7#D7 =! DEDUCTIBIL;Y ( 3TRIBU;NS =
TAX,N YE>S AF #AIIJ4
  ,P>AGRAPH #C 7REPLACES =M] P>AGRAPH
#C7 EXPLA9S ! A4I;N ( P>AGRAPH
#ADG.B7#D77A7 3C]N+ EMPLOYEE 3TRIBU;NS =
CURR5T S]VICE & PO/-#AIHI PA/ S]VICE4
  ,P>AGRAPH #D 7REPLACES =M] P>AGRAPHS
#E1 #G1 #H1 & #I7 D1LS )! LIMITS ON AN
EMPLOYEE'S DEDUC;N "U P>AGRAPH
#ADG.B7#D77B7 = PA/ S]VICE 3TRIBU;NS
:ILE N A 3TRIBUTOR 6AN ,,RPP 9 A YE>4 ,!
NOTE 6P>AGRAPH #D REFLECTS ! PROPOS$
AM5D;T 6P>AGRAPH #ADG.B7#D77B7 9 !
,APRIL #BF1 #AIIE DRAFT LEGISL,N1 :
PROVIDES =A REVIS$ -PUT,N (!         #CH
             ,,IT-#AFG;,R#F          C#I
DEDUC;N = ,,RPP PA/ S]VICE 3TRIBU;NS
:ILE N A 3TRIBUTOR4
  ,NEW P>AGRAPH #E \TL9ES ! 3DI;NS "U :
A 3TRIBU;N = PA/ S]VICES 2F #AIIJ :ILE N
A 3TRIBUTOR QUALIFIES =A DEDUC;N "U
P>AGRAPH #ADG.B7#D77B74
  ,P>AGRAPH #F 7REPLACES =M] P>AGRAPH
#F7 EXPLA9S ! PROVI.N PROVID+ =!
C>RY=W>D & DEDUC;N ( 3TRIBU;NS 9 A
PREVI\S TAX,N YE> 6AN ,,RPP = PRE-#AIIJ
PA/ S]VICES :ILE N A 3TRIBUTOR T EXCE$ !
MAXIMUM DEDUC;N ( 4#C1EJJ ALL[A# "U
P>AGRAPH #ADG.B7#D77B74
  ,P>AGRAPHS #G & #H 7REPLACE =M]
P>AGRAPH #AJ7 REFLECT ! A4I;N ( P>AGRAPH
#ADG.B7#D77C74 ,SPECIFIC,Y1 ! CALCUL,N
(! MAXIMUM DEDUC;N ALL[A# "U T P>AGRAPH
=A 3TRIBU;N = PA/ S]VICE 2F #AIIJ1 :ILE
! EMPLOYEE 0 A 3TRIBUTOR 6AN ,,RPP1 IS
\TL9$4
  ,NEW P>AGRAPH #I D1LS )! C>RY=W>D
RULES : APPLY 6! BAL.E ( UNDEDUCT$ PRE-
#AIIJ PA/ S]VICE & PRE-#AIIJ CURR5T
S]VICE 3TRIBU;NS REMA9+ 6BE C>RI$    #CI
             ,,IT-#AFG;,R#F          D#I
=W>D F PRIOR YE>S : MAY 2 CLAIM$ ON !
DEC1S$'S F9AL 9COME TAX RETURN =! YE> (
D1?4 ,! NOTE 6P>AGRAPH #I REFLECTS !
PROPOS$ A4I;N ( SUBSEC;N #ADG.B7#F7 9 !
,APRIL #BF1 #AIIE DRAFT LEGISL,N4
,PROPOS$ SUBSEC;N #ADG.B7#F7 W PROVIDE
=A DEDUC;N F ! DEC1S$'S 9COME =! YE> (
D1? OR ! IMMLY PREC$+ YE>1 9 RESPECT (!
DEC1S$'S PREVI\SLY UNDEDUCT$ ,,RPP
3TRIBU;NS1 )\T REG>D 6! 4#C1EJJ ANNUAL
LIMITS SPECIFI$ 9 SUBP>AGRAPHS
#ADG.B7#D77B77;II7 & 7C77;II74
  ,P>AGRAPH #AJ 7REPLACES =M] P>AGRAPH
#AH7 REFLECTS ! REP1L ( SUBSEC;N #H7#G7
&! 9TRODUC;N ( SUBSEC;N #ADG.B7#E74
P>AGRAPH #AJ D1LS )! SPECIAL RULE1
APPLICA# =! #AIIA 6#AIID YE>S1 RELAT+ 6!
DEDUCTIBIL;Y ( PA/ S]VICE 3TRIBU;NS MADE
0C]TA9 T1*]S 65A# !M 6DEDUCT 3TRIBU;NS =
PA/ S]VICES 9 A3ORD.E )! RULE 9 P>AGRAPH
#H EV5 ?\< ! PA/ S]VICES RELATE 6A YE> 9
: ! T1*] 0 A 3TRIBUTOR 6A P5.N PLAN4
  ,P>AGRAPHS #AE & #AF REPLACE =M]
P>AGRAPH #AF (! ,SPECIAL ,REL1SE     #DJ
             ,,IT-#AFG;,R#F          E#I
TO ,,IT-#AFG;,R#E DAT$ ,FEBRU>Y #AI1
#AIIJ4 ,P>AGRAPH #AE RELATES 6! ,TAX
,C\RT ( ,CANADA CASE1 ,>?UR ,E4 ,WALTON
V4 ,! ,M9I/] ( ,N,NAL ,REV5UE1 #HI ,,DTC
#DBC1 ,7#AIHI7' ,,CTC #BCCE4 ,? P]TA9S
6! DEDUCTIBIL;Y (! 9/AL;T 9T]E/ POR;N (!
TOTAL 9/AL;T PAY;T = PA/ S]VICE
3TRIBU;NS MADE "U AN AGREE;T 5T]$ 96AF
,NOVEMB] #AB1 #AIHA1 =! #AIHI &
SUBSEQU5T TAX,N YE>S4 ,P>AGRAPH #AF
RELATES 6! DEDUCTIBIL;Y ( A3RU$ 9T]E/ &
9/AL;T 9T]E/ P]TA9+ 6PA/ S]VICE
3TRIBU;NS MADE "U AN AGREE;T 5T]$ 962F
,NOVEMB] #AC1 #AIHA4
  ,NEW P>AGRAPH #AG 3TA9S A ,GLOSS>Y
6PROVIDE AN EXPLAN,N ( C]TA9 T]MS US$
"?\T ! BULLET94 ,NOTE T ! DEF9I;N (! T]M
8YE>0 REPLACES =M] P>AGRAPH #H1 &!
DEF9I;N (! T]M 8EMPLOYEE0 REPLACES =M]
P>AGRAPH #BC4
  ,=M] P>AGRAPH #AC 0 DELET$ 2C (!
AM5D;T : REP1L$ ! DEDUC;N "U P>AGRAPH
#FJ7J7 =! TRANSF] ( SPECIAL PAY;TS S* Z
                                     #DA
             ,,IT-#AFG;,R#F          F#I
SUP]ANNU,N OR P5.N B5EFITS 6A REGI/]$
P5.N FUND OR PLAN4 ,! COV]AGE
-------------------------------------#AJ
(! DEDUC;N = TRANSF]S ( ELIGI# RETIR+
ALL[.ES 6AN ,,RPP "U P>AGRAPH #FJ7J4#A7
HAS BE5 DELET$ Z ! SUBJECT MATT] W 2
COV]$ 9 A SEP>ATE BULLET94
  ,=M] P>AGRAPH #AI1 : D1LT )! ,U4,S4
,SOCIAL ,SECUR;Y ,TAX1 IS N COV]$ "H
S9CE X IS 3TA9$ 9 ,9T]PRET,N ,BULLET9
,,IT-#ABB;,R#B1 ,UNIT$ ,/ATES ,SOCIAL
,SECUR;Y ,TAXES & ,B5EFITS1 DAT$ ,M>*
#AC1 #AIHI4
  ,=M] P>AGRAPH #BJ : RELAT$ 6!
,RAILROAD ,RETIRE;T ,TAX ,ACT (! ,UNIT$
,/ATES1 0 DELET$ S9CE ? 9=M,N C 2 F.D 9
,,IT-#ABB;,R#B4
  ,=M] P>AGRAPH #BA : 3C]N$ PREMIUMS PD
= P5.NS "U ! ,N,NAL ,9SUR.E ,S*EME (
,GRT ,BRITA9 IS N COV]$ 9 ? BULLET9 Z ?
BULLET9 D1LS PRIM>ILY ) EMPLOYEE ,,RPP
3TRIBU;NS4
  ,=M] P>AGRAPH #BB1 : D1LT )! TRANSF] (
FUNDS "U SUBSEC;N #ADF7#AF7 F A      #DB
             ,,IT-#AFG;,R#F         A#AJ
REGI/]$ RETIRE;T SAV+S PLAN &A REGI/]$
P5.N FUND OR PLAN1 HAS BE5 DELET$4
,COV]AGE ( ? SUBJECT W 2 3TA9$ 9 A
SEP>ATE BULLET94
  ,9 ! ,APP5DIX1 ,EXAMPLE ;,A %[S !
CALCUL,N (! DEDUC;N = EMPLOYEE 3TRIBU;NS
= PRE-#AIIJ PA/ S]VICE :ILE N A
3TRIBUTOR4 ,EXAMPLE ;,B ILLU/RATES !
CALCUL,N (! DEDUC;N = EMPLOYEE 3TRIBU;NS
= PRE-#AIIJ PA/ S]VICE :ILE A 3TRIBUTOR4













                                     #DC