Line 208 - RRSP/PRPP deduction

Line 208 - RRSP/PRPP deduction

Line 208 - RRSP/PRPP deduction

This section gives general information about registered retirement savings plans (RRSPs) and pooled registered pension plans (PRPPs). If you need more information after reading this section, go to cra.gc.ca/rrsp or see Guide T4040, RRSPs and Other Registered Plans for Retirement.

Specified Pension Plan (SPP) contributions generally have the same rules as RRSP contributions.

Note
Currently, the Saskatchewan Pension Plan is the only arrangement prescribed to be a specified pension plan.

For more information about the Saskatchewan Pension Plan, visit saskpension.com.

The PRPP is a retirement savings option for individuals, including those who are self-employed. For more information, go to cra.gc.ca/prpp.

To find out if you have to complete Schedule 7, read the information at the top of the schedule. For more information about completing Schedule 7, see "How to complete Schedule 7" on this page. To view your RRSP/PRPP information, go to cra.gc.ca/myaccount.

Supporting documents - If you are filing electronically, keep all your documents in case we ask to see them later. If you are filing a paper return, attach your completed Schedule 7 (if applicable). Also send your official receipts for all amounts you contributed from March 1, 2016, to March 1, 2017, including those you are not deducting on your return for 2016 and those you are designating as Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP) repayments. For more information about HBP and LLP repayments, see lines 6 and 7 on the next page.

If you contributed to your spouse's or common-law partner's RRSP, the receipt must show your name as the contributor and your spouse's or common-law partner's name as the annuitant (recipient).

Maximum contributions you can deduct

The maximum you can deduct on line 208 is the lesser of:

the unused RRSP/PRPP contributions identified as amount (B) of "Your 2016 RRSP/PRPP Deduction Limit Statement" shown on your latest notice of assessment, notice of reassessment, T1028 statement, Your RRSP/PRPP Information for 2016, or on My Account, plus the total of your RRSP/PRPP contributions made from March 1, 2016, to March 1, 2017, (not including amounts you designate as HBP or LLP repayments - see lines 6 and 7 on the next page); and

your RRSP/PRPP deduction limit for 2016, minus your employer PRPP contribution from line 205 (see lines 11 to 14 on the next page), plus amounts you transfer to your RRSP/PRPP on or before March 1, 2017 (see line 15 on the next page).

Notes
After the end of the year you turn 71 years of age, you or your spouse or common-law partner cannot contribute to an RRSP/PRPP under which you are the annuitant (recipient). However, you can still contribute to your spouse's or common-law partner's RRSP until the end of the year he or she turns 71 years of age, and you can deduct those contributions if you still have an unused RRSP deduction limit.

If you contribute more to an RRSP/PRPP than you can deduct, you may have to pay a tax of 1% per month. To pay this tax you must file a T1-OVP, 2016 Individual Tax Return for RRSP, SPP and PRPP Excess Contributions, for each applicable tax year. For more information, go to cra.gc.ca/rrsp or see "Tax on RRSP excess contributions" in Guide T4040, RRSPs and Other Registered Plans for Retirement.

How to complete Schedule 7

You may not have to complete Schedule 7. To find out, read the information at the top of the schedule.

Line 1 - Unused RRSP/PRPP contributions

These are contributions you made to your own RRSP or to an RRSP for your spouse or common-law partner after 1990 but did not deduct on line 208 of any previous return or designate as an HBP or an LLP repayment and any PRPP contribution you made before March 1, 2016, that you have not deducted. The total of unused contributions is identified as amount (B) of "Your 2016 RRSP/PRPP Deduction Limit Statement" shown on your latest notice of assessment, notice of reassessment, or T1028 statement, Your RRSP/PRPP Information for 2016, if you showed them on a previous year's Schedule 7.

If you do not have your notice of assessment, notice of reassessment, or T1028 statement, you can find out if you have unused RRSP/PRPP contributions by using RRSP/PRPP deduction limit, one of our Tax Information Phone Services (see page 73), or by going to cra.gc.ca/myaccount or cra.gc.ca/mobileapps and selecting MyCRA.

Notes
If you have unused RRSP/PRPP contributions you made from March 3, 2015, to February 29, 2016, you should have filed a completed Schedule 7 with your 2015 return.

If you did not, send your receipts and a completed copy of a 2015 Schedule 7 to your tax centre, but do not include them with your return for 2016. For more information, see "How to change a return" on page 71.

If you have unused contributions you made from January 1, 1991, to March 2, 2015, but did not show on a Schedule 7 for 2014 or earlier, contact us.

Lines 2 and 3 - Total RRSP/PRPP contributions

This total includes amounts you:

contributed to your own RRSP, or PRPP or to a RRSP for your spouse or common-law partner from March 1, 2016, to March 1, 2017;

contributed to your own SPP or the SPP for your spouse or common-law partner from March 1, 2016, to March 1, 2017;

transferred to your own RRSP/PRPP (see line 15 on the next page); and

designated as HBP or LLP repayments (see lines 6 and 7 on the next page).

Include on these lines all contributions you made from January 1, 2017, to March 1, 2017, even if you are not deducting or designating them on your return for 2016.

Otherwise, we may reduce or disallow your claim for these contributions on your return for a future year.

Tax Tip
If you have made deductible RRSP/PRPP contributions for 2016 (other than transfers) from March 1, 2016, to March 1, 2017, you do not have to claim the full amount on line 208 of your 2016 return. Depending on your federal and provincial or territorial rates of tax for 2016, and your expected rates of tax for future years, it may be more beneficial for you to claim, if applicable, only part of your contributions on line 14 of Schedule 7 and on line 208 of your 2016 return. The contributions you do not claim for 2016 will then be available for you to carry forward and claim for future years when your federal and provincial or territorial rates of tax are higher.

In all cases, you must record the total RRSP/PRPP contributions you made from March 1, 2016, to March 1, 2017, on lines 2 and 3 of your 2016 Schedule 7.

Do not include the following amounts:

any unused RRSP/PRPP contributions you made after February 29, 2016, refunded to you or your spouse or common-law partner in 2016. Report the refund on line 129 of your return for 2016. You may be able to claim a deduction on line 232;

part or all of the contributions you made to your RRSP or an RRSP for your spouse or common-law partner less than 90 days before either of you withdrew funds from that RRSP under the HBP or the LLP. For more information, go to cra.gc.ca/hbp or see Guide RC4112, Lifelong Learning Plan (LLP);

Note
You cannot withdraw funds from a SPP or a PRPP under the LLP or the HBP.

your employer's contributions to your PRPP (see line 205);

any payment directly transferred to your RRSP/PRPP if you did not receive an information slip for it or if it is shown in box 35 of your T4RSP or T4RIF slips;

the part of an RRSP withdrawal you recontributed to your RRSP and deducted on line 232. This would have happened if, in error, you withdrew more RRSP funds than necessary to obtain past-service benefits under a registered pension plan (RPP); or

the excess part of a direct transfer of a lump-sum payment from your RPP to an RRSP, a PRPP or a registered retirement income fund (RRIF) you withdrew and are including on line 129 or 130 of your return for 2016 and deducting on line 232.

Lines 6 and 7 - Repayments under the HBP and the LLP

If you withdrew funds from your RRSP under the HBP before 2015, you have to make a repayment for 2016. If you withdrew funds from your RRSP under the LLP before 2015, you may have to make a repayment for 2016.

In either case, your 2016 minimum required repayment is shown on your latest notice of assessment, notice of reassessment, T1028 statement, Your RRSP/PRPP Information for 2016, or at cra.gc.ca/myaccount or go to cra.gc.ca/mobileapps and select MyCRA.

Note
You cannot withdraw funds from a SPP or a PRPP under the LLP or the HBP. However, a SPP or PRPP contribution can be designated as a LLP or a HBP repayment.

To make a repayment for 2016, you must designate a contribution to your own RRSP and/or PRPP from January 1, 2016, to March 1, 2017, as a repayment on line 6 or 7 of Schedule 7. Do not include an amount you deducted or designated as a repayment on your 2015 return or that was refunded to you. Do not send your repayment to us.

You cannot deduct any RRSP/PRPP contribution you designate as an HBP or an LLP repayment on Schedule 7.

Note
If you repay less than the minimum amount for 2016, report the difference on line 129 of your return.

Lines 11 to 14 - RRSP/PRPP contributions you are deducting for 2016

Your RRSP/PRPP deduction limit for 2016 is shown on line A of your latest notice of assessment, notice of reassessment, T1028 statement, Your RRSP/PRPP Information for 2016 (if we sent you one), minus any employer contributions made in 2016 to your PRPP (see line 205). You can carry forward indefinitely any unused part of your RRSP/PRPP deduction limit accumulated after 1990.

If you do not have your notice of assessment, notice of reassessment, or T1028 statement, you can find your limit for 2016 by using RRSP/PRPP deduction limit, one of our Tax Information Phone Services (see page 73), by going to cra.gc.ca/myaccount, or cra.gc.ca/mobileapps and selecting MyCRA, or by contacting us.

To calculate your RRSP/PRPP deduction limit for 2016, get Guide T4040, RRSPs and Other Registered Plans for Retirement.

Note
In a previous year, you may have received income for which you could contribute to an RRSP, but you may not have filed a return for that year. To keep your RRSP deduction limit current, you have to file a return for each year.

Line 15 - Transfers

You may have reported income on line 115, 129, or 130 of your return for 2016. If you contributed certain types of this income to your own RRSP/PRPP on or before March 1, 2017, you can deduct this contribution, called a transfer, in addition to any RRSP/PRPP contribution you make based on your "RRSP/PRPP deduction limit for 2016."

For example, if you received a retiring allowance in 2016, report it on line 130 of your return. You can contribute to your RRSP/PRPP up to the eligible part of that income (box 66 of your T4 slips or box 47 of your T3 slips) and deduct it as a transfer. Include the amounts you transfer on lines 2 or 3 and 15 of Schedule 7.

For more information about amounts you can transfer, see Guide T4040, RRSPs and Other Registered Plans for Retirement.

Lines 19 to 22 - 2016 withdrawals under the HBP and the LLP

Report on line 19 the total of your Home Buyers' Plan (HBP) withdrawals for 2016 from box 27 of your T4RSP slips. Tick the box at line 20 if the address of the home you acquired with these withdrawals is the same as the address on page 1 of your return.

Report on line 21 the total of your Lifelong Learning Plan (LLP) withdrawals for 2016 from box 25 of your T4RSP slips. Tick the box at line 22 to designate your spouse or common-law partner as the student for whom the funds were withdrawn. If you do not tick the box, you will be considered to be the student for LLP purposes. You can change the person you designate as the student only on the return for the year you make your first withdrawal.

Note
You cannot withdraw funds from a SPP or a PRPP under the LLP or the HBP.

See Guide RC4112, Lifelong Learning Plan (LLP), and go to cra.gc.ca/hbp for more information about:

when you have to make your repayments; and

the rules that apply when the person who made the withdrawal dies, turns 71 years of age, or becomes a non-resident.

Line 23 - Contributions to an amateur athlete trust (AAT)

Report on line 23 qualifying performance income (generally endorsement income, prize money, or income from public appearances received by an amateur athlete) contributed in 2016 to an AAT since this income qualifies as earned income in calculating the RRSP contribution limit of the trust's beneficiary.