If an employer makes contributions to the company's group RRSP are those contributions considered taxable income to the employee? I've read conflicting information online

Answer

Both employer and employee may make contributions. Employee's contributions are tax deductible.
Employer's contributions to the RRSP are included in the employee's income, but are then deducted as part of the RRSP contributions deduction

When an employee leaves their job prior to retirement, their group RRSP can be cashed out (but the proceeds will be taxable), or transferred to another RRSP (tax-free).  The RRSP will not be locked-in, as it would with transfers from a registered pension plan.

Was this answer helpful? Yes No
Original
Moderator

No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community