Pooled Registered Pension Plan (PRPP)/Voluntary Retirement Savings Plan (VRSP) employer contributions

What’s in this article?

 

What is this?

Your employer may choose to participate in a pooled registered pension plan (PRPP) or voluntary retirement savings plan (VRSP) and can make contributions to your PRPP or VRSP account. A PRPP is a retirement savings option for individuals, including those who are self-employed, and a VRSP is a group savings plan that is offered to Québec employees by employers but administered by authorized administrators.

Employer contributions are not taxable benefits and should not be included in your income or deducted from it. However, you must enter the contributions your employer made to your PRPP or VRSP account on your income tax return.

The Canada Revenue Agency (CRA) uses the amount you report to determine your registered retirement savings plan (RRSP)/PRPP deduction limit for the next year. The maximum amount you or your employer can contribute to a PRPP/VRSP plan is determined by your RRSP deduction limit for the year. Employer contributions to your PRPP/VRSP plan will reduce your RRSP contribution room for the year.

 

Am I eligible?

If your employer made contributions to your PRPP or VRSP account, these amounts are not included in your taxable income and are not tax deductible. However, you must report the amount your employer contributed on your tax return so that the CRA can determine your RRSP deduction limit.

Click the links below for information on eligibility requirements for each retirement savings plan:

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

  1. Click the PREPARE tab.
  2. Click the YOUR YEAR IN REVIEW icon. You will find yourself here:
  3. Click the checkbox labelled I contributed to an RRSP/PRPP or have unused contributions.
  4. Scroll to the bottom of the page and click Continue.
  5. Click the RRSPS AND INVESTMENTS icon. You will find yourself here:
  6. Under the RRSPS heading, click the checkbox labelled PRPP/VSRP employer contributions.
  7. Scroll to the bottom of the page and click Continue.

When you arrive at the page for the PRPP/VSRP employer contributions, enter your information into the tax software.

 

Where can I learn more?