My employer matched my contribs to RRSP up to 5% of my salary. The RRSP contrib slip shows what I put in. Does employer amount count against my RRSP room? Where reported?

[jhofstetter]

Expert advice was to enter only contribution amounts reported on the slips from organizations administering the RRSPs. But it seems to be only the amount I contributed, not including what the employer matched. Is that reported somewhere else? Does the employer's contribution reduce my contribution room or not?

[TurboTaxGinette]

Yes, your employer's contribution counts against your contribution room also.

As per the Canada Revenue Agency (CRA) Contributions to a PRPP Employer PRPP contributions, combined with your PRPP, SPP and RRSP contributions, as well as contributions to your spouse or common-law partner's RRSP and SPP, that are above the RRSP deduction limit may be considered excess contributions. 

You can deduct your contributions on your income tax and benefit return, but the deduction must not be more than the difference between your RRSP deduction limit and the employer's contributions to your PRPP. You cannot deduct employer PRPP contributions on your income tax and benefit return.

Example

Each year, you contribute the maximum amount to your RRSPs and deduct this amount on line 20800 of your income tax and benefit return. In 2023, you become a member of a PRPP and you and your employer agree to make regular contributions throughout the year. You know your RRSP deduction limit for 2023 is $10,000, so you agree to contribute $5,000 and your employer agrees to contribute $5,000. When filing your 2023 income tax and benefit return, you must remember to not include all of the contributions ($10,000) on line 20800 as you have done in prior years because you can only deduct up to $5000 of the contributions you made to your own PRPP. This is because only your PRPP contributions are deductible. Since the employer’s contributions are not included in your income, they are not deductible on your income tax and benefit return.

Employer contributions

An employer can make voluntary contributions to your PRPP. Contributions are not included in your income and are not deductible on your income tax and benefit return. Only your contributions to your PRPP are deductible on line 20800. Employer contributions that were made to your plan for the calendar year must be reported on line 20810.

Enter on line 20810 the total of all amounts shown in the designated “employer contribution amount” box of your PRPP receipts. Do not report this amount as income, and do not deduct it on your income tax and benefit return. We will use it to calculate your registered retirement savings plan/PRPP deduction limit and to determine the excess-contribution tax (if applicable).

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