What is an RPP and How Does It Work?
A Registered Pension Plan (RPP) is a plan offered by the employer for a future retirement savings program. It often has an employee and employer contributions. The amount contributed by the employee is tax deductible in the year of the contribution.
These amounts of RPP can be for contributions of the current year of service or prior years of service, that were contributed by the employee.
Key fact
It is important to know that any deductions, made this year, won’t be able to carry forward the amount you don’t deduct for use in future years. One must deduct those amounts if they appear on your tax slips or receipts.
Where do we find the information?
The amounts will be usually in T4, T4A or receipts.
Box 20 – RPP contributions – Includes past service contributions.
Box 74 – Past service contributions for 1989 or earlier years while a contributor
Box 75 – Past service contributions for 1989 or earlier years while not a contributor
T4A box 032 any contributions made for a registered pension plan contributions for past service.
Or in any receipts provided by the Pension Plan Administrator.
How to Enter in CloudTax:
1️⃣ Go to Forms in CloudTax.
2️⃣ Search for T4 or T4A
This step should be done automatically by the system if we are able to upload from CRA.
3- look for the form T1 - RPP Contributions
4- enter the :
5- Click on next to save the information.
Why This Matters
✅ Reduces taxable income, lowering your tax bill
✅ Maximizes deductions
✅ Ensures compliance with CRA regulations
If you’re eligible, don’t forget to claim it in the YEAR you receive it! Every dollar counts. 💰