You must roll your MFP into RRSP during the year or within 60 days after the year end to get the deduction. (I made a mistake on previous post)
E.g. 2024 MPF $100,000
Full amount will be included in 2024 income.
However, you roll $100,000 to RRSP during 2024 or up to 60days after Dec 31, 2024 (usually around end of Feb 2025 or March 1) to get a deduction on 2024 income tax returns.
If your marginal / average income tax rate is low, you can consider not putting the full $100,000 and then the balance will be included in income.
E.g. 2024 MPF 100,000
Feb 15 2025 roll in $80,000 and take deduction.
Then $20,000 will be included in 2024 income.
CNTower2024-09-26 20:21:35
RRSP contribution should be within 60 days after year end.
My mistake.
The deadline for calendar year 2024 (Jan 1 to Dec 31) income tax returns T1 is April 30(normally).
If you have $100,000 MPF and only want to iput $80,000 into RRSP then the remaining $20,000 will be included as income for 2024.
You will include $100,000 as income for 2024 on Line 11500 and deduct your RRSP contribution of $80,000 on line 20800. $20,000 will then be included as 2024 income.