brett4182
Returning Member

Seniors and students

I will work with the employer to attempt to follow your suggestions. Thanks for your help
Alok1
Returning Member

Seniors and students

My employer deducted tax on my RRSP contribution of my bonus - how can I claim this back ?

Seniors and students

Good day! I am having a similar issue and came across this question... I am wondering if anyone can share with me where to actually find the knowledge that employer contributions to an RPP are not taxable.. I have scoured the web and found bits and pieces but nothing ever cites where the information is coming from.  I also spoke to CRA and they stated that since it is not a PRPP that it is a taxable benefit.

 

Fingers crossed someone can help!!

Seniors and students

As per the Canada Revenue Agency (CRA): "Contributions and investment earnings are tax-exempt until such time as benefits commence to be paid." Please see About Registered Pension Plans (RPPs) for further information.

Thank you for choosing TurboTax.

ironman21
Returning Member

Seniors and students

@Kaylascarlett14  did you find the answer to this? I am also looking for an answer to the same query. If the Employers contribution to the RPP is a taxable benefit then it will be double taxed, first for the year when the Employer is contributing to the RPP and second when we withdraw the money from the RPP account.

Seniors and students

@ironman21 I did. While it is rather unusual and doesn't happen in most work places, I can confirm that the employer paid portion is non-taxable for an RPP contribution, not to be confused with a PRPP. Then in Box 20 of a T4 you would only report what the employee put in and not what the employer contributed, the pension adjustment remains the same as that is based on the income of said employee. I cannot speak to the withdrawal portion you are mentioning, as ours does not allow withdrawal until retirement or removal from the plan itself, that is when the employee is taxed. Unfortunately, I had to discuss with multiple entities concerning this, including the CRA, and they couldn't give me specific places to find concrete yes or no's, they just all simply confirmed and agreed that because it is tax sheltered, it cannot be a taxable benefit.