Is the Zakat calculation for RRSP same as CPP? What about my employer’s contributions?
Unlike CPP, RRSP (Registered Retirement Saving Plan) is not a mandatory plan. A person enters into it voluntarily. Hence, the ruling will slightly differ in this case.
The proceeds which one contributes are one’s own assets, albeit one does not have their possession at this time.
Hence, Zakat has to be paid on it, but since he does not have access to it, its compulsion to pay will only come when one regains possession of it after the age of 65.
At that time, one would have to give Zakat on all of one’s contribution and for all the years it has sat in the plan as well.
The amount that an employer matches does not belong to this individual throughout the life of the plan and comes into his possession as a gift at age 65. Hence, this employer’s contribution will only become Zakatable at the time of possession. One will not have to pay Zakat on employers contribution for the past years.