Unused 401(K)/IRA Contributions prior to Year 2009

gandotra · Post by **gandotra** » Sat Feb 27, 2010 9:45 pm

In the light of US-Canada Fifth Protocol Treaty signed on Dec 15, 2008 where in RRSP and 401(K)/IRA Contributions are to be mutually recognized -Can a Factual Resident of Canada (with Dual Residence Status in USA) claim the unused prior years 401(K)/IRA Contributions in lieu of RRSPs on Year 2009 Canadian Tax Return.

Reference http://www.cra-arc.gc.ca/E/pub/tg/t4040/t4040-09e.pdf Page 10 one can deduct unused contributions made in to RRSPs from Jan 1, 1991 to March 1, 2010. Can any 401(K)/IRA Contribution in the year 2004 - 2008 which was not claimed on Canadian Return for respective years be claimed on Year 2009 Canadian Return provided there is a room in the Individual RRSP's deduction limit?

Thanks/

nelsona · Post by **nelsona** » Sun Feb 28, 2010 8:20 am

Previous year 401(K) contributions are NOT eligible for deduction on your Cdn return. Only current year 401(K) contributions, as long as you are Cdn resiudent. IRA contributions are NEVER deductible, not before, and not now.

While 401(K) contributions are recognized on your CDn return, that does not make them RRSP. Thus not all provisions of RRSP apply to 401(k).