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.
401k contribution
Moderator: Mark T Serbinski CA CPA
Re: 401k contribution
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.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: 401k contribution
Thankyou nelsona. I was concerned if this was just some sort of glitch on my return...
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Re: 401k contribution
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?
Re: 401k contribution
hello - this is an old post, but wanted to clarify whether US employer contribution towards 401k is taken into consideration for calculating RRSP limit? i.e. lower of 18% of prior year's earnings or prescribed limit (29,210 for 2022 e.g.) minus US employer contribution, or is it simply 18% of prior year earnings?
Also, does CRA not accept W2 as a proof of 401k contribution? Or do they need a letter from employer or statement
Also, does CRA not accept W2 as a proof of 401k contribution? Or do they need a letter from employer or statement