# employer match for group RRSP counts for this year or next year?



## joncnca (Jul 12, 2009)

hi,

i've just enrolled into the company group RRSP where the employer matches my contribution up to 3% of my income (we are eligible to enroll after 1 year of employment). as i understand that both my contribution and the employer's match will both count towards my RRSP limit, i'm not concerned whether i may exceed my RRSP contribution limit for 2009.

last year i contributed to an RRSP outside of work, and i've realized that i'm almost at my limit for 2009. i was planning to max out over the next 2 months to finish contributing for 2009 (outside of work) via the automatic purchase program at my bank. however, since i'm now enrolled in the company RRSP, my employer and I will be making regular RRSP contributions to for the next 60 days, would this not also fill up my 2009 contribution, which could lead to overcontribution if i'm not careful?

i believe the answer to the above question is yes, and i guess i can avoid over contribution by simply stopping my outside-of-work RRSP contributions for the first 2 months, and wait until the 2010 fiscal year starts to contribute for next year.

however, i have already received my 2009 T4 (my company gives them out early), which would not include any company RRSP contributions made between now and March 1. so does that mean that these contributions would actually count for 2010, and they would show up on my 2010 T4?

i want to contribute as much as possible. i mean, if i really need to stop my auto-contributions outside of work for a couple months, i'll just dump that money into my TFSA. but i just wanted to get this all clear in my mind

thanks!


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## MoneyGal (Apr 24, 2009)

Any RRSP contributions in the first 60 days of the year can be used either in the year that just ended, or the current calendar year. 

Even though you already have your T4s, you can add RRSP contributions (because they are entered on a separate schedule). Make sense?


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## joncnca (Jul 12, 2009)

great, sounds good. 

"Any RRSP contributions in the first 60 days of the year can be used either in the year that just ended, or the current calendar year."

this statement seems a little more unfamiliar to me. i guess it is totally up to me to report it as a contribution for either 2009 or 2010, right? so if i want it to count for 2010, i just won't enter contributions during these 60 days into my 2009 tax return, but enter it into my 2010 tax return (about 14 months from now), right?

sorry if it's a simple question. i've never filled out the rrsp schedule because i only started contributing this year. i guess it'll make more sense to me when i'm doing my taxes and reading through the schedules.


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## MoneyGal (Apr 24, 2009)

It's totally up to you. 

When you are completing the RRSP schedule, you will see that you can enter contributions made in the first 60 days of the current (filing) year, the tax year, or any previous year. 

I promise it will make sense when you actually do it. Congrats on making your first RRSP contributions!


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## Berubeland (Sep 6, 2009)

If you are like me and broker than a church mouse you can even withhold claiming your RRSP deduction and carry forward as long as you like.


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## CanadianCapitalist (Mar 31, 2009)

As MoneyGal has explained, there are three RRSP contribution periods for the 2009 financial year (and ignoring that you can make a RRSP contribution but not claim it):

Jan & Feb 2009, Mar to Dec. 2009, Jan & Feb 2010

A RRSP contribution in Jan or Feb 2009 can count against the 2008 year or the 2009 year. If your RRSP contribution exceeds your 2008 contribution limit, the extra contribution will carry forward to 2009 year.

Any contribution you make in the Mar to Dec 2009 period counts only as a 2009 contribution.

Likewise, a RRSP contribution in Jan or Feb 2010 can count against 2009 or 2010.

At any time your RRSP contributions cannot exceed your contribution limit by more than $2,000.


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## MoneyGal (Apr 24, 2009)

...well, they CAN, but that's considered an overcontribution and will be subject to a fine.


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## leslie (May 25, 2009)

This is going off-topic but the claim by Berubeland should not be allowed to stand unchallenged. * "If you are like me and broker than a church mouse you can even withhold claiming your RRSP deduction and carry forward as long as you like.["* See discussion.


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## joncnca (Jul 12, 2009)

thanks everyone for all your responses! this really clears it up for me. it seems i'll be able to report jan/feb 2010 contributions for the 2010 tax year if necessary.

i've also come to understand that while i can claim deductions for my jan/feb 2010 contributions in the 2010 tax year, i'm still supposed to report jan/feb 2010 contributions in my 2009 tax return. moreover, on my 2009 tax return, i should indicate that tax deductions on my jan/feb 2010 contribution should be made for the following year (i.e. 2010).


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## Four Pillars (Apr 5, 2009)

joncnca said:


> thanks everyone for all your responses! this really clears it up for me. it seems i'll be able to report jan/feb 2010 contributions for the 2010 tax year if necessary.
> 
> i've also come to understand that while i can claim deductions for my jan/feb 2010 contributions in the 2010 tax year, i'm still supposed to report jan/feb 2010 contributions in my 2009 tax return. moreover, on my 2009 tax return, i should indicate that tax deductions on my jan/feb 2010 contribution should be made for the following year (i.e. 2010).


I'm not sure if you worded your response correctly but...



joncnca said:


> i'm still supposed to report jan/feb 2010 contributions in my 2009 tax return.


You only report contributions for one tax year. Your 2010 Jan/Feb contributions can be used for the 2009 tax year or 2010 tax year or for that matter any future tax year. 



joncnca said:


> moreover, on my 2009 tax return, i should indicate that tax deductions on my jan/feb 2010 contribution should be made for the following year (i.e. 2010).


No, for any given tax year you just enter the contributions that you want to claim for that tax year. Don't put any other info about future or past contribution claims.

The way I think of the contribution rules is that for any given tax year - the "true" tax year is from March 2 of that year to March 1 of the following (instead of Jan 1 to Dec 31). Any contributions made within that time period can be claimed for that tax year or any future tax years.


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## joncnca (Jul 12, 2009)

ok, so over the course of 2009, i started contributing to to my RRSP and i'm about to hit the ceiling on my contribution limit listed on my 2008 notice of assessment. therefore, on my 2009 tax return i need to make sure i don't deduct any more than what was listed on my 2008 NOA (to avoid penalties). 

but since it's the first 60 days of 2010, any contributions i make in jan/feb 2010 can be reported on my 2010 tax return, so i don't have to worry about going over the limit if i choose to put in a little more into my RRSP right now (obviously, contributions right now should not exceed my expected 2010 RRSP contribution room, not that i'd be able to exceed it anyway). that's what i'm understanding, right?


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## HaroldCrump (Jun 10, 2009)

joncnca said:


> ok, so over the course of 2009, i started contributing to to my RRSP and i'm about to hit the ceiling on my contribution limit listed on my 2008 notice of assessment. therefore, on my 2009 tax return i need to make sure i don't deduct any more than what was listed on my 2008 NOA (to avoid penalties).
> 
> but since it's the first 60 days of 2010, any contributions i make in jan/feb 2010 can be reported on my 2010 tax return, so i don't have to worry about going over the limit if i choose to put in a little more into my RRSP right now (obviously, contributions right now should not exceed my expected 2010 RRSP contribution room, not that i'd be able to exceed it anyway). that's what i'm understanding, right?


Right.


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## Cal (Jun 17, 2009)

You are allowed to over contribute up to $2000 more than is shown on your NOA, you just can't claim anything over what is listed on your NOA.

If after receiving your statement from CRA, you find that you've made contributions in excess of your contribution limit, there is a "safety net". Over-contributions can remain in your plan without penalty as long as the excess balance is $2,000 or less. (If your over-contribution exceeds $2,000, you may be assessed a penalty of 1% per month on the excess amount.) While you won't get a tax deduction for any over-contribution in the year it is made, you can claim it as part of your contribution limit in subsequent years.

I can only assume that this rule is in place to account for minor adjustments that could be made to your NOA, due to errors, change in rules etc.

So you should be ok.


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## HaroldCrump (Jun 10, 2009)

Cal said:


> I can only assume that this rule is in place to account for minor adjustments that could be made to your NOA, due to errors, change in rules etc.


I assume if someone were to use this $2,000 every year as a floating extra room (not to get a tax refund but to protect that $2,000 and all its gains from taxes) CRA will soon catch up to that person, no?
Or is that an acceptale, legal strategy to protect an additional $2,000 every year from the taxman (and all compounding gains from that $2,000 annually)?


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## lb71 (Apr 3, 2009)

HaroldCrump said:


> I assume if someone were to use this $2,000 every year as a floating extra room (not to get a tax refund but to protect that $2,000 and all its gains from taxes) CRA will soon catch up to that person, no?
> Or is that an acceptale, legal strategy to protect an additional $2,000 every year from the taxman (and all compounding gains from that $2,000 annually)?


This is an accumulated limit, not annual. I don't think the CRA will be concerned since it is within your right to be in that situation.


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## novel (Aug 14, 2013)

*RRSP Contributions*

Sorry to bring up an old thread but with tax season approaching I figure this topic will be particularly apt.

I get the fact that contributions in the first 60 days of the new fiscal year can be deducted in the preceding tax year, current tax year, or some future tax year, but we still must submit receipts for ALL contributions made in tax year 2013 even if we choose not to deduct them, correct?

"Receipts

Attach receipts for all amounts you contributed from March 2, 2013 to March 3, 2014, to your paper income tax and benefit return, *including those you are not deducting on your income tax and benefit return for 2013* and those you are designating as Home Buyers' Plan or Lifelong Learning Plan repayments."

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/208/menu-eng.html


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