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588 $ $ If you left or changed jobs after 1996, you may be able to benefit from changes to registered retirement savings plan (RRSP) rules introduced by the 1997 fedâ€" eral budget. You might be able to make extra contributions to your plan, for extra savings on your 1998 taxes "The 1997 federal budget fixed some longâ€"standing RRSP problems by introducâ€" ing something called ‘Pension Adjustment Reversal‘ (PAR)," explains John Wonfor, CA, national director of tax with BDO Dunwoody. The problem was this: If you are a memâ€" ber of a company pension plan, the amount you are allowed to contribute to your RRSP â€"â€"your RRSP contrbution room â€"â€" is reduced each year by a pension adjustâ€" ment (PA). The PA reduces your RRSP contribution room by the amount your company puts into the company pension plan on your behalf, as well as by any conâ€" tributions you make to that plan. "The PA is intended to ensure that a member of a pension plan is not able to save more for retitement on a taxâ€"deferred basis than someone who relies totally on an RRSP" You get Special Edition extras plus thege maciting Yolvo $70 standard features: 5â€"cylinder l)(llléufi;:hnginv * Front Wheel Drive * Antidock Braking System * Side Impact Protection System (SIPS) * Dualâ€"zone Air Conditioning * Locks * Cruise Control and more New RRSP rules could mean extra tax savings Headiamp Washer{wipers * Power Heated Mirrors * Power Drive safely VOLVO $70 SE SPECIAL EDITION LEATHER INTERIOR + "SPIKA" ALLOY WHEELS + POWER SUNROOF 4â€"SPEED AUTOMATIC TRANSMISSION + TRACTION CONTROL â€" FOG LIGHTS REAR SPOMER + LEATHERâ€"TRIMMED STEERING WHEEL + METALUC PAINT s Or lease for $458 per month for 42 months o with a $3995 down payment. Waterloo 168 King St. S. 579â€"1860 Y (18 MONTHS) * CALL US NOW FOR DETAILS WATERLOO REGIONAL CREDIT UNION MEMBER: DEPOSIT INSURANCE CORPORATION OF ONTARIO 4.60%0 485 KING ST. N. WATERLOO, ONTARIO (519) 885â€"5090 Bâ€"K MOTORS (Rate subject to change) Kitchener 1334 Weber St. E. 894â€"9700 VOLNVO This wouldn‘t cause you a problem if you stayed with your employer until your retirement. But, if you were to leave your job, your total accumulated PA is often much greater than the benefits to which you are entitled on leaving. In effect, your RRSP contribution room has been reduced morte than it should have been says Wonfor. However, the PA often wasn‘t fair, he adds. In some pension plans, known as defined benefit plans, your employer guarantees you a certain pension on your retirement. In this case, the PA is often more than the total funds that were actually contmbuted to the plan. "This usually happens if you are younger, which means that your employer‘s contributions to the plan on your behalf are very low because the company will not have to proâ€" vide you with pension benefits for many vears." â€" Moreover, you‘ll also lose out if you leave your job before your employer‘s conâ€" tributions to your pension plan have vested. "Your PA reflected your employer‘s conâ€" tributions, but you will never get those 1315 Bishop St. 622â€"3377 Cambridge The PAR is the amount that the aggreâ€" gate PAs exceed the actual amount of conâ€" tributions that you will realize if you leave your job before reurement. "It restores the amount of ygur lost RRSP contribution room." contributions if they didn‘t vest. Meanâ€" while, you‘ve lost that RRSP contribution room." notes Wonfor. To solve the problem, the government introduced the Pension Adjustment Reverâ€" sal (PAR), says Glen Gilbert, CA, a tax partner with Doane Raymond in Toronto "Generally, the PAR will increase your RRSP deduction limit by the amount by which the PAs exceed any pension benefits for postâ€"1989 services you receive on terâ€" mination, thereby restoring the RRSP room that would otherwise be lost," says Gilbert. The new rules create some interâ€" esting tax planning opportunities, he adds. "If you‘re getting a severance package, for example, you could use your PAR to increase your RRSP contribution, helping to defer tax on all or part of that money." Ask a chartered accountant how to best take full advantage of the new rules. the New Beetle http://waterloo.vw.com Autoâ€"Haus Waterioo Drivers wanted? 550 Weber St. N., becomes real ... 884â€"7470 A*s. W l/ Still a Variety of Fresh Florida Citrus Fruit _ m p, 48 WILLIAM ST. W. 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