If my employer puts a percentage of my income as an RRSP contribution, should this amount be added to earned income?
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Our response:
Thanks for your question, Bobby. Rules regarding treatment and administration of RRSPs are set by the Canada Revenue Agency (CRA). For specific information about your employer’s RRSP contributions, contact the CRA. The following is general information only.
Some employers offer Group RRSPs as a benefit to help employees save for retirement. They are identical to individual RRSPs – only they’re set up by your employer. Your employer’s contributions to your Group RRSP are considered earned and taxable income. However, just like contributions to an individual RRSP, contributions to a Group RRSP – whether made by you or matched by your employer – are tax-deductible to you.
If you are contributing to another RRSP outside of the group RRSP, keep in mind the annual RRSP contribution limits – there are penalties for over-contributions. Learn more about making contributions to an RRSP.