RRSP Contribution Room RPP --> Unlocked RRSP

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Feb 21st, 2017 5:57 pm

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Feb 21st, 2017 12:45 pm

ethanpurdy [OP]: Newbie; Jul 1, 2015; 56 posts; 20 upvotes; Toronto

Feb 21st, 2017 12:45 pm

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

Feb 21st, 2017 1:17 pm

angelus97: Sr. Member; Apr 22, 2014; 523 posts; 254 upvotes; Edmonton, AB

Feb 21st, 2017 1:17 pm

What, you didn't like the answers you got on reddit?

Feb 21st, 2017 1:22 pm

ethanpurdy [OP]: Newbie; Jul 1, 2015; 56 posts; 20 upvotes; Toronto

Feb 21st, 2017 1:22 pm

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?

Feb 21st, 2017 1:30 pm

abc123yyz: Deal Addict; Apr 21, 2014; 2191 posts; 973 upvotes; Alberta

Feb 21st, 2017 1:30 pm

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.

Feb 21st, 2017 1:43 pm

ethanpurdy [OP]: Newbie; Jul 1, 2015; 56 posts; 20 upvotes; Toronto

Feb 21st, 2017 1:43 pm

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.

Feb 21st, 2017 3:16 pm

Sorkid49: Jr. Member; Oct 24, 2011; 153 posts; 104 upvotes; Markham

Feb 21st, 2017 3:16 pm

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.

Feb 21st, 2017 3:23 pm

ethanpurdy [OP]: Newbie; Jul 1, 2015; 56 posts; 20 upvotes; Toronto

Feb 21st, 2017 3:23 pm

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.

Feb 21st, 2017 3:35 pm

Sorkid49: Jr. Member; Oct 24, 2011; 153 posts; 104 upvotes; Markham

Feb 21st, 2017 3:35 pm

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.

+3

Feb 21st, 2017 5:57 pm

marktang: Deal Addict; Jan 31, 2006; 4980 posts; 874 upvotes; Toronto

Feb 21st, 2017 5:57 pm

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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