Employee Contributions to a United States Retirement Plan for Cross-Border Commuters RC268

Complete this form if you are a Canadian resident who commutes or otherwise travels to the United States (U.S.) to perform employment services, and you are a member of a qualifying retirement plan of your employer in the U.S. A 401(k) arrangement is among the qualifying U.S. retirement plans. For a complete list of qualifying U.S. retirement plans, go to canada.ca/craannex-b-convention-canada-usa (paragraph 10(b)).

Note
If you are temporarily working in Canada and you continue to participate in a qualifying retirement plan offered by your employer in the U.S., see Form RC267, Employee Contributions to a United States Retirement Plan for Temporary Assignments.

You can deduct your contributions to your U.S. retirement plan on your Canadian income tax and benefit return if all of the following conditions are met:

  • The remuneration you receive for the services you perform as an employee in the U.S. is taxable in the U.S.
  • Your employer is a resident of the U.S. or has a permanent establishment in the U.S.
  • The contributions are attributable to the services you perform as an employee in the U.S., for which you receive U.S. taxable remuneration and are made during the period you perform those services.

The amount you can deduct cannot be more than the amount of tax relief available in the U.S. or your registered retirement savings plan (RRSP) deduction room remaining after you deduct any RRSP contributions for the year.

Do not attach any statements of your contributions to your paper return, but keep them in case the Canada Revenue Agency asks to see them.

Report all amounts in Canadian dollars. For information about exchange rates, see "Report foreign income and other foreign amounts" in Step 2 of the Income Tax and Benefit Guide for Non-Residents and Deemed Residents of Canada.

Calculating your deduction
           
Amount of your 2023 contributions to the United States (U.S.) retirement plan  1 
Amount of contributions that would qualify for tax relief in the U.S. if you were resident of the U.S. and performed your services in the U.S.  2 
Enter whichever is less: amount from line 1 or line 2. 51205  3 
 
2023 RRSP deduction limit  4 
RRSP, PRPP, and SPP contributions that you are deducting for 2022 (from line 18 of Schedule 7) -  5 
Line 4 minus line 5 =  6 
Enter whichever is less: amount from line 3 or line 6.
Add this amount to the amount on line 20700 of your return.		  7 

Prescribed amount
             
An adjustment is required when you accrue benefits in one of your employer's U.S. retirement plan in 2023. This prescribed amount reduces your 2024 RRSP deduction limit.
 
Calculate your 2023 prescribed amount as follows:
 
Money purchase limit for 2023  1 
 
If you participated only in a money purchase plan:
Amount of employer contributions made on your behalf for 2023  2 
If you participated only in a defined benefit plan:
Your resident compensation in 2023 (1)  x  10% =  3 
If you participated in a combination money purchase and defined benefit plan
(or in separate money purchase and defined benefit plans):
Amount of employer contributions made on your behalf
  for 2023 under money purchase provisions.		  4 
Your resident compensation in 2023 (1)  x  10% =  5 
Enter whichever is more: amount from line 4 or line 5.    6 
 
Enter whichever is less: the amount from line 1 or the amount from line 2, line 3, or line 6, as applicable.
Add this amount to the amount on line 20600 of your return.		 51230  7 
 
(1) Your resident compensation for 2023 is the total of your salaries, wages, and other amounts from your employment with the employer in question.