Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Whether RRSP contribution limit can be retroactively increased where pension plan wound up and employer contributions do not enure to employees' benefit.
Position TAKEN:
No.
Reasons FOR POSITION TAKEN:
Wording of 146(5)(a).
XXXXXXXXXX 940799
April 11, 1994
Dear Sir/Madam:
This is in reply to your letter of March 8, 1994, in which you ask whether you can make extra contributions to your registered retirement savings plan (RRSP) because the benefit of employer contributions for the 1974 through 1982 taxation years to the
XXXXXXXXXX
has been denied to you. You explained that the employer was wound up and that the employees' class action suit to recover these pension contributions was not successful.
The Income Tax Act does not permit extra contributions to an RRSP in these circumstances. Although the deduction limit for contributions to an RRSP is reduced where an individual may benefit from employer contributions to a registered pension plan, there is no retroactive increase in the RRSP deduction limit where an individual never becomes entitled, or later loses the right, to the benefit of those employer contributions to the pension plan.
We are sorry our response could not be more favourable.
Yours truly,
for Director
Financial Industries Division
Rulings Directorate
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