RC269: Employee Contributions to a Foreign Pension Plan or Social Security Arrangement for 2016 – Non-United States Plans or Arrangements

Did you contribute to a social security arrangement or employer-sponsored pension plan this year in a country that wasn’t the United States? With the RC269: Employee Contributions to a Foreign Pension Plan or Social Security Arrangement for 2016 - Non-United States Plans or Arrangements, you’ll be able to calculate a deduction and pension adjustment for your contributions. You’ll also be able to claim a 15% non-refundable tax credit!

Thanks to Canada’s various tax treaties, your pension plan contributions can be recognized if you moved from one country to another for a short period of time, as long as you meet certain conditions. Those conditions are:

  • You were regularly participating in the arrangement before working in Canada
  • Your contributions are attributable to your work in Canada, and were made while you worked here
  • Your employment income is taxable in Canada
  • The period in which you made contributions while temporarily living in Canada is no more than 60 months (48 months for Finland)
  • Your contributions are deductible only in the year they were made and only to the extent that they’d qualify for tax relief in your home country if you had lived and worked there

The Canadian Competent Authority has to agree that social security arrangements correspond to the Canada Pension Plan (CPP) and that your foreign pension plans correspond to a Canadian registered pension plan (RPP).

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2016 taxes:

  1. Under the PREPARE tab, click the LET'S TALK ABOUT 2016 icon.

  2. Select the checkbox labelled I contributed to a PRPP or non-Canadian pension plan.

  3. Click the PENSION PLANS AND INVESTMENTS icon. You'll find yourself here:

     

  4. Under the CONTRIBUTIONS TO A FOREIGN PENSION PLAN heading, select the checkbox labelled Employee contributions to a foreign pension plan or social security arrangement (RC269), then click Continue.

  5. When you arrive at the page for Employee contributions to a foreign pension plan or social security arrangement, enter your information into the tax software.

  

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