401 k contributions for a 50+ years old Canadian cross border worker

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Composer
Posts: 1
Joined: Tue Jul 20, 2021 7:24 pm

401 k contributions for a 50+ years old Canadian cross border worker

Post by Composer »

Hello,
IRS allows to contribute an additional US$6,500 to the total of US$26,000 to 401k plan for a 50+year old person.
Will CRA allow to deduct the full amount for a Canadian resident for a Canadian tax return? Will it be considered as an excess contribution for a Canadian tax purposes?
Thanks.
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nelsona
Posts: 18697
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: 401 k contributions for a 50+ years old Canadian cross border worker

Post by nelsona »

CRA will allow you to deduct upto your RRSP limit. Any excess will not be deductible or carried forward, but will not be considered as excess contributions.

You continue to report an RC268.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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