Does transferring existing money from a DCPP to an RRSP reduce the RRSP contribution limit?

[ibrahim-ashqar]

I recently moved jobs. With my old employer, I had both a DCPP and a RRSP account with financial institute A. Assume DCPP = $1000 and RRSP = $500.

Now, that I have moved to another employer, I am contemplating moving the funds to a RRSP account with financial institute B to benefit from lower MERs. However, will this be just a simple transfer of money (i.e. no impact to my RRSP contribution) OR will this be considered as contributing an additional $1000 to my RRSP (from my DCPP)?

[TonyC11]

In general any money contributed to your RRSP will count against your deduction limit.

There are certain exceptions, such as a Transfer Contribution from a RIF or LIF, but to my knowledge an amount from an employer pension plan is not Transferable, except to a Locked In RRSP created for the purpose. Such a plan is subject to either Federal or Provincial rules depending on the pension plan. 

I suggest to download CRA RRSP guidelines, and your financial adviser should be knowledgeable.

For the record I transferred two separate employer PPs to LRRSPs during my career. One Federal regulated, the other ON regulated. In recent times these were both converted to LIFs with 50% of each account being Transferred to my personal RRSP as a section 60 Transfer with no impact on deduction limit.

Mployer 

[TurboTax-Terry]

The impact to your RRSP contribution limit should have been adjusted for the year that the contributions were made by the employer (and yourself if applicable) and reported in Box 52 of your T4 slip.

[TonyC11]

Not the question being asked, though your comments are quite correct.