Personal Finance

Do RPP contributions use up my RRSP room?

  • Last Updated:
  • Jan 28th, 2012 8:34 am
Newbie
Jun 8, 2011
44 posts
KITCHENER

Do RPP contributions use up my RRSP room?

My RRSP limit is $10,000. This year, I have contributed $500 to my work RPP and they have matched the $500 - so $1000 has gone into my RPP this year. How much space do I have left in my RRSP for this year? $10,000? $9,500? $9,000?

Does what has been put into my RPP count as an RRSP contribution, or do I still have all my RRSP space left?

Thanks!
4 replies
Sr. Member
User avatar
Aug 22, 2009
589 posts
151 upvotes
Guelph, ON
I contribute to an RPP as well, and I believe that this does use up your contribution room (since you are not taxed on your contributions). I believe that this year you have $10,000 - $500 - $500 = $9,000 of room left.

Can someone who knows more about this stuff please verify?
Deal Addict
User avatar
Feb 1, 2005
2204 posts
227 upvotes
Where did you get your limit number and when did your employer and you contribute to your RPP?

If the answers are both in 2011 (i.e., the $10,000 is from your Notice of Assessment from your 2010 tax year which you received in Spring 2011), then you still have $10,000 RRSP contribution room.

The $1,000 that you and your employer contributed in 2011 will be reflected in your RRSP contribution room (your RRSP deduction limit will be $1,000 less than it would normally be if you didn't have any RPP) for the Notice of Assessment for your 2011 tax year which you will receive this spring assuming you file everything on time.
Sr. Member
User avatar
Oct 24, 2011
623 posts
180 upvotes
Timmins
The amount you (and your employer) contribute to the RPP does not affect your RSP contribution room dollar for dollar. The calculation is this:
- 18% of your earned income less the pension adjustment plus any carry forward of contribution room = your contribution limit for that year
If your notice of assessment for 2010 said you have $10,000 contribution room for 2011, that is what you have, no matter how much or how little you and your employer contribute to an RPP in 2011 or 2012

Your 2011 T4 slip will show a pension adjustment in Box 52; you carry that figure to line 206 on page 3 of your return; that figure will affect your 2012 contribution limit.

The pension adjustment is a complicated formula that your employer must use whenever there is a registered pension plan involved. Note; this does not mean a work RSP plan.
Newbie
Jun 8, 2011
44 posts
KITCHENER
Thanks everyone! Nice and simple answers to a befuddling question. Thanks again!

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