I think I have over-contributed to my RRSPs. What can I do?
The Canada Revenue Agency (CRA) defines all contributions greater than $2,000.00 above your allowable RRSP Contribution Limit as Excess Contributions. The CRA generally allows over-contributions up to $2,000.00 without penalty.
First you should estimate what your allowable RRSP contribution will be in the current tax year and the contributions you have made in the year to date. If the Excess Contribution cannot be used as the current year’s contributions, you will need to think about requesting that the Excess Contributions be refunded.
If the Excess Contributions remain within the RRSP, then the CRA may apply a 1.0%, per month, tax on the excess amount. Visit the CRA website for the necessary six-step process and forms required to refund the excess amounts @
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/cntrbtng/nnsd-eng.html
According to the CRA, your notice of assessment or notice of reassessment will indicate that you may have to pay a 1.0% tax on RRSP Excess Contributions if your unused RRSP contributions exceed your RRSP deduction amount.
Related Questions
- What income is included in the calculation of my allowable RRSP contributions?
- What income does not qualify as Eligible Earned Income?
- How is my RRSP contribution amount calculated?
- What is a Pension Adjustment (PA) and why is it deducted from my allowable RRSP contribution room?
- If I leave my current employer and my pension benefit is less than the Pension Adjustments (PAs), do I get my RRSP contribution room back?
- What is a Past Service Pension Adjustment (PSPA)?
- What is the maximum I can contribute to my Individual and Spousal RRSPs for 2010, 2011 and 2012?
- What is the maximum amount I can contribute to my or my spouse's RRSP in 2013 and 2014?
- What are the deadlines for making contributions and claiming them on my income tax return?
- Do I need to deduct all of my RRSP contributions in the tax year they were made?
- Do my RRSP contributions need to be made with cash?
- Can a deceased person's estate contribute to the deceased's RRSP if they still have allowable RRSP contribution room available?
- Is there an age limit for making RRSP contributions?
- I currently have allowable RRSP contribution room that I will never be able to use. Can I gift or transfer it to another person?
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