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 @


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.

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