401k contribution

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skarme312
Posts: 5
Joined: Mon Apr 26, 2021 2:24 pm

401k contribution

Post by skarme312 »

I was a cross border commuter for 8 months in 2020. I filed form RC268 E (Employee Contributions to a United States Retirement
Plan – Cross-Border Commuters). I also contributed to an RRSP. I noticed that while my contribution to RRSP reduced my contribution room, the 401k contribution (RC268) was not subtracted from the RRSP. Is this correct? I was always under the impression that 401k contribution reduced the RRSP contribution room for the particular year.
nelsona
Posts: 17014
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: 401k contribution

Post by nelsona »

This appears to be the way CRA is doing things these days. As is stands now, the RC268 form is only (a) determining the LIMIT on the CURRENT year deductibility of your 401(k) contributions and (b) your Pension adjustment (PA) if you are a participant in your company plan. It is not impacting future contribution limits.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
skarme312
Posts: 5
Joined: Mon Apr 26, 2021 2:24 pm

Re: 401k contribution

Post by skarme312 »

Thankyou nelsona. I was concerned if this was just some sort of glitch on my return...
rradb@hotmail.com
Posts: 8
Joined: Mon Jan 28, 2019 12:09 pm

Re: 401k contribution

Post by rradb@hotmail.com »

Can you explain the advantages and disadvantages of contributing to a 401k when also contributing to RRSP while temporarily in the US and unsure of the return date to Canada?
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