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Hi, All

I have a question about RRSP roll down to next year. For example, my RRSP deduction limit is $5000 in 2023. I contributed $2000 to RRSP in 2023 and first 60 days of 2024. And my employer contributed $2000 during this time as well. So, I have $1000 can be transfer to next year. Does it mean I shall fill 1000 into the cell show in below picture?

image.png.2902be8acb25432af3b9f5207df81ef4.png

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On 3/24/2024 at 3:28 PM, Geo123 said:

Hello Taxreturn,

This entry means the current year RRSP deduction will be $0 and the entire amount is carried forward.

Hello, Geo123,

According to my example (mentioned on ahead) I should input 1000.00 into this cell. Right?

 

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If you put $1,000 into the cell, you will get a $3,000 deduction for 2023 and will carry a $1,000 contribution forward to be used in future years. if you leave the cell blank, your unused $1,000 in contribution room will be carried forward automatically to augment the future contribution limit and you'll get a $4,000 deduction in 2023..

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Hello, Curmudgeon

Thank you for your help. But I am still confused.

- I put $2,000 into my RRSP. My employer put $2,000 into my RRSP. It is totally $4,000. "If you put $1,000 into the cell, you will get a $3,000 deduction for 2023 "  Why is $1,000 less? Just because of putting $1,000 to the cell? If like this, where is the $1,000? Be transferred back to my normal bank account? 

- Could you tell me in what situation people need to input to this cell. Why they don't want to transfer unused limit to next year? 

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Taxreturn,

When you contribute to your RRSP, you can choose to deduct only part of your contribution, and keep the rest for a future year. You would want to do this if your partial deduction reduces your income tax to 0$, there is no point in deducting more. Or, if you anticipate changing tax brackets in a future year. So, if you enter 4000$, you are using all your contributions in the 2023 taxation year. If you enter 1000$, the remaining 3000$ will be available as a deduction next year.

 

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