401(k) deduction on Canadian return

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michsim
Posts: 20
Joined: Thu Mar 08, 2007 11:45 am

401(k) deduction on Canadian return

Post by michsim »

How does 401(k) contributionsaget deducted now that the treaty has changes.
Working in the US as a Canadian resident and commuting to the US fr work
Contibutions of $ 22,000 50% employer 50% employee.
Does thsi whole amount become a RRSP dedcutions if wjthin the limit?
Does the employer contribution simply gets excluded from incmoe and only the employee contribution get deducted as RRSp?
Used to have to include the 401(k) amount in income in Canada but was excluded from income in the US,
Any guidance?

Thank you for your help.
nelsona
Posts: 18365
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

YOUR contributions will no longer be taxable in canada. You still include thenm in your toatl income, but now there is a form that was intoduced for last year that calculates teh ammount of your contributions that are deductible.

Your employer's contributions were never included in your income and will continue not to be.

http://www.cra-arc.gc.ca/E/pbg/tf/rc268/README.html
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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