Personal Finance

Personal Tax Question: How to declare RRSP with Employer matching the amount

  • Last Updated:
  • Apr 14th, 2018 11:40 am
Jr. Member
Oct 31, 2010
144 posts
6 upvotes
Montreal
ml88888888 wrote:
Mar 17th, 2017 5:12 pm
Your first statement is correct only for a RPP(i.e. a normal define benefit or define contribution pension plan) which the matching amt is not included as a taxable income on the T4 for the year(i.e. not shown on box 40 and not included in box 14 of T4)). But then you don't get a contribution receipt for a RPP. So your second statement is only correct for a group RRSP plan.
If you have a group RRSP plan which the matching contribution is included in the box 14(employment income) and box 40, then you should get a RRSP contribution receipt(he is getting one as he said he got 2 receipts) and deduct it. Otherwise you will be taxed twice for the matching contribution(i.e. as taxable income now and taxed as taxable income when you withdraw) without deduction when it is put into RRSP now.
The only time it would be included in your T4 box 52, pension adjustment is if the matching contribution is not included in box 14(employment income) which is how is reported for a normal RPP(registered pension plan).
That is the difference between a RPP & a group RRSP. You must have one of them. Do you know which one do you have from your work place?
Scenario 1: Say you have an RPP with 50-50 employee / employer. T4 Box 52 contains $10K total. T4 Box 20 RPP contains $5K total. You should not add back the 5K that your personally contributed on line 208. (You should not receive a receipt slip)

On Scenario 2: say you have a company that matches 50-50 but only vested after 2 years of service. The company nicked Box 52 for 5K (50% of the contributions). They would issue RRSP slips and correctly file them in BOX 208. I am assuming the PA and the BOX 208 would be double counted if you leave the company before 2 years as they removed their contribution. Is there recourse to go back and have your PA adjusted?

Thank you,
Deal Fanatic
Nov 24, 2013
5253 posts
1849 upvotes
Kingston, ON
eurodin wrote:
Apr 10th, 2018 9:25 pm
Scenario 1: Say you have an RPP with 50-50 employee / employer. T4 Box 52 contains $10K total. T4 Box 20 RPP contains $5K total. You should not add back the 5K that your personally contributed on line 208. (You should not receive a receipt slip)

On Scenario 2: say you have a company that matches 50-50 but only vested after 2 years of service. The company nicked Box 52 for 5K (50% of the contributions). They would issue RRSP slips and correctly file them in BOX 208. I am assuming the PA and the BOX 208 would be double counted if you leave the company before 2 years as they removed their contribution. Is there recourse to go back and have your PA adjusted?

Thank you,
Scenario 1 you’re describing sounds like a Defined Contribution RPP. The tax deduction for your contributions is in box 20, so you don’t get a separate contribution receipt.

Scenario 2 sounds like a Group RRSP with matching going into a DPSP, so you get an RRSP contribution receipt to claim on your tax return for your contributions, and your employer’s matching like in scenario 1 is a Box 52 Pension Adjustment.

Knowing which vehicles are involved in your plan (DB RPP, DC RPP, RRSP, DPSP, PRPP) gives you the answer you need on how to handle.

To answer your vesting question, if you leave the plan before you vest, the plan administrator files a Pension Adjustment Reversal (PAR) form with CRA. You should get a copy of it as well, I believe. The PAR effectively undoes the past PA and gives you RRSP contribution room back.
Jr. Member
Oct 31, 2010
144 posts
6 upvotes
Montreal
Mike15 wrote:
Apr 10th, 2018 11:41 pm
Scenario 1 you’re describing sounds like a Defined Contribution RPP. The tax deduction for your contributions is in box 20, so you don’t get a separate contribution receipt.

Scenario 2 sounds like a Group RRSP with matching going into a DPSP, so you get an RRSP contribution receipt to claim on your tax return for your contributions, and your employer’s matching like in scenario 1 is a Box 52 Pension Adjustment.

Knowing which vehicles are involved in your plan (DB RPP, DC RPP, RRSP, DPSP, PRPP) gives you the answer you need on how to handle.

To answer your vesting question, if you leave the plan before you vest, the plan administrator files a Pension Adjustment Reversal (PAR) form with CRA. You should get a copy of it as well, I believe. The PAR effectively undoes the past PA and gives you RRSP contribution room back.
Yup that sounds 100% right. Had to go back and check and the plan administrator did file a PAR, but not copy was issued. You know your stuff. Thanks!

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