Personal Finance

RRSP Contribution Room RPP --> Unlocked RRSP

  • Last Updated:
  • Feb 21st, 2017 5:57 pm
[OP]
Newbie
Jul 1, 2015
56 posts
20 upvotes
Toronto

RRSP Contribution Room RPP --> Unlocked RRSP

Hi,

In June I switched employers and had to move my RPP. The value of the RPP was ~$4,000 so I was able to unlock it and add it to my personal RRSP. Does this affect my current contribution space?

Edit: should have clarified that the RPP was DC.

Example: Start 2016 with $17,000 in RRSP contribution space. Contribute $13,000 to RRSP and $4,000 to RPP (employer + my contributions). Switch job and move RPP to RRSP. My RRSP now has $17,000 balance. In this case do I have any contribution room left? Or does the $4,000 in RPP adjust next year's contribution room (in which case I would still have $4,000 available for this year)?

Thanks for your help!!
Last edited by ethanpurdy on Feb 21st, 2017 12:45 pm, edited 1 time in total.
8 replies
Sr. Member
User avatar
Apr 22, 2014
523 posts
254 upvotes
Edmonton, AB
What, you didn't like the answers you got on reddit?
[OP]
Newbie
Jul 1, 2015
56 posts
20 upvotes
Toronto
philland wrote: What, you didn't like the answers you got on reddit?
I want to confirm them. It's fully possible one person has it wrong so I want to be sure. What's so wrong with that?
Deal Addict
Apr 21, 2014
2191 posts
973 upvotes
Alberta
I didn't know you can move an RPP into an unlocked rrsp. I moved it out from a former employer but it had to be in another locked in rrsp.
[OP]
Newbie
Jul 1, 2015
56 posts
20 upvotes
Toronto
abc123yyz wrote: I didn't know you can move an RPP into an unlocked rrsp. I moved it out from a former employer but it had to be in another locked in rrsp.
I was able to do it because the amount was very small. I think if it's less than some percent of YPME (~$55K) you can move it to unlocked-RRSP. The percent varies across provinces.
Jr. Member
Oct 24, 2011
153 posts
104 upvotes
Markham
What was the answer from Reddit?

It's a DC plan right?

The short answer is no, it will not affect your RRSP room as it is (or at least it should be) already accounted for in your annual PA (pension adjustment) depending on your period of employment.

Long'er answer might applicable to DB plan.
[OP]
Newbie
Jul 1, 2015
56 posts
20 upvotes
Toronto
Sorkid49 wrote: What was the answer from Reddit?

It's a DC plan right?

The short answer is no, it will not affect your RRSP room as it is (or at least it should be) already accounted for in your annual PA (pension adjustment) depending on your period of employment.

Long'er answer might applicable to DB plan.
Yes, it's a DC plan. Answer on reddit was that it shouldn't affect my current contribution room but will adjust downward my room for next year (i.e. after I file in April). I'd just like to double check with someone else to be sure I have it right. I haven't yet received my T4 from that employer but I assume it will either be reflected in the PA or RPP Contribution box.
Jr. Member
Oct 24, 2011
153 posts
104 upvotes
Markham
Ic, I guess I understand your question more clearly now.

Yes, if you contributed to the RPP in 2016, the PA will be reported in 2017 and affect your 2017 contribution room (one year lag).

But moving it from a RPP to a RRSP has no effect on your contribution room, whether it's locked in or not-locked in.
Deal Addict
User avatar
Jan 31, 2006
4980 posts
874 upvotes
Toronto
ethanpurdy wrote: Yes, it's a DC plan. Answer on reddit was that it shouldn't affect my current contribution room but will adjust downward my room for next year (i.e. after I file in April). I'd just like to double check with someone else to be sure I have it right. I haven't yet received my T4 from that employer but I assume it will either be reflected in the PA or RPP Contribution box.
Just recently changed jobs too. It'd depend what kind of pension you have DB or DC. I moved out of Hoopp a portion of the pension has to be transfer into a locked in rrsp. And the other portion is non locked in. And if you have contribution room left in your RRSP then you can request them to transfer the amount it. But they need proof you have that room. If you don't have room then they will give you a cheque which will be part of your income
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