What's new for RRSPs and related plans

First home savings account (FHSA)

Qualifying individuals can open an FHSA starting April 1, 2023. For more information on FHSAs, go to First Home Savings Account (FHSA).

Fixing contribution errors in money purchase registered pension plans (2021 and subsequent years)

Effective January 1, 2021, plan administrators of money purchase registered pension plans (MP RPPs) are able to correct for both under-contributions and over-contributions. They would be permitted to:

• Correct certain types of errors through additional contributions to an employee’s account under a MP RPP to compensate for an under-contribution error made in any of the preceding 10 years, subject to a dollar limit. Such corrections are called Permitted Corrective Contributions (PCCs) and will be reported on Form T215, Past Service Pension Adjustment (PSPA) Exempt from Certification or Permitted Corrective Contribution (PCC) by the plan administrator.
• Correct for pension over-contribution errors in respect of an employee for any of the 10 years prior to the year in which the excess amount is refunded to the contributor. Such corrections are called Pension Adjustment Corrections (PACs) and will be reported on Form T10, Pension Adjustment Reversal (PAR) or Pension Adjustment Correction (PAC) by the plan administrator.

This measure would apply in respect of additional contributions made and amounts of over-contributions refunded in the 2021 and subsequent taxation years.

Forms and publications

• Guide T4040, RRSPs and Other Registered Plans for Retirement