So the CRA has reviewed your tax return, do you know what happens after? Read our blog today to know all about what… https://t.co/Tc5VRhDPS4
All about RRSP/PRPP contributions and deduction limits, Part 2in Tax Advice Information and Updates
Who can contribute to a RRSP / PRPP? Generally you can contribute to your RRSP and PRPP until December 31st of the year you turn 71 years old and when you have available RRSP/PRPP deduction limit room. Note that you can contribute to your spouse’s or common-law partner’s RRSP until December 31st of the year that he or she turns 71 years old.
When is the deadline to contribute to a RRSP/PRPP for the purpose of claiming a deduction on your 2017 return? The deadline for contributing to your Registered Retirement Savings Plan (RRSP) for the 2017 tax filing year is March 1st, 2018.
What if you contribute more than your RRSP/PRPP deduction limit? Generally, you have to pay a 1% tax per month on your contributions that exceed your RRSP/PRPP deduction limit by more than $2,000
What is RRSP/ PRPP contributions can you deduct on your tax return? You can claim a deduction for:
- Contributions you made to your RRSP/PRPP;
- Contributions you made to your spouse’s RRSP;
- Your unused RRSP/PRPP contributions from the previous year.
The following are amounts that you cannot claim a deduction for:
- Amounts you pay for administration services for an RRSP;
- Brokerage fees charged to buy and sell within a trusteed RRSP;
- The interest you paid on money you borrowed to contribute to an RRSP/PRPP;
- Any capital losses within your RRSP;
- Employer contributions to your PRPP.
Will amounts transferred to an RRSP/PRPP affect the deduction limit? No, amounts you transfer directly to your RRSP/PRPP do not affect your RRSP/PRPP deduction limit. However, you may need to include an amount in income and claim an offsetting deduction.
Can contributions be made to a deceased individual’s RRSP/PRPP? No. No one can contribute to a deceased individual’s RRSP/PRPP after the date of death.