Question about tracking my RRSP contributions

eortlund · Post by **eortlund** » Fri Jul 17, 2009 11:27 am

I am keeping a list of our yearly RRSP contributions, as you advised. We made contributions between January and March 2009 that were reported on the 2008 tax returns. On my tracking list, would I include these with 2008 or 2009?

nelsona · Post by **nelsona** » Fri Jul 17, 2009 11:55 am

2009. I presume these to be private RRSP contributions.

eortlund · Post by **eortlund** » Fri Jul 17, 2009 12:01 pm

Most of them were through my husband's employer. We also made an extra contribution to this plan in February.

Now I have a spousal RRSP--I've probably asked this before but I assume this is private? I'm just tracking everything at this point.

nelsona · Post by **nelsona** » Fri Jul 17, 2009 12:19 pm

Spousal palns are private. I make the distinction, of course because private RRSP contributiona re not tax-deductible in US, and thus make up what is know as the non-taxable investment in your RRSP which will eventually be withdrawn free of US tax.

Since contributions made to a company-sponsored RRSP are tax-deductible, they will be taxed upon withdrawal, and thus there is no real need to 'track' these.

Question. When you say you made an extra contrbution to your husbands employer-sponsored plan, how was that done? Thru payroll deduction or a separate payment. just curious.

eortlund · Post by **eortlund** » Fri Jul 17, 2009 5:20 pm

Thank you for your reply. We made the extra contribution by going personally to the bank.

nelsona · Post by **nelsona** » Sun Jul 19, 2009 5:06 am

so it wasn't part of your husbands plan at work.

eortlund · Post by **eortlund** » Sun Jul 19, 2009 7:42 am

Well, the extra contribution was added to my husband's RRSP, his employer-sponsored one. His employer doesn't care if he makes extra contributions--but they only match a certain amount each paycheck.

eortlund · Post by **eortlund** » Sun Jul 19, 2009 7:48 am

Our RRSPS are at RBC, by the way. They told us if we wanted to contribute extra to his plan, it could be done through payroll or not.

nelsona · Post by **nelsona** » Sun Jul 19, 2009 11:55 am

I would be careful about this. Technically the IRS views employer-sponsored retirement plans as being funded by the employer and/or by employee payroll deductions. Going outside of this may make not be in keeping with that definition.

eortlund · Post by **eortlund** » Sun Jul 19, 2009 2:36 pm

Thanks for the tip--didn't think about that.