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RRSP over contribution question

S

spartanking49

Full Member
Sep 19, 2017
34
9
Hello,

I made a $20080 RRSP contribution in January 2022 which I deducted in tax return for 2021. My contribution limit for 2022 was 14364.(From NOA 2021) My employer had RRSP plan in which contribution were made from bi-weekly pay cheque (From March-Dec 2022) Around Dec 2022 my limit of 14364 reached and made $688 over contribution. Also first 60 days of 2023 there is 3968 contribution.

I understand you have to pay penalty if you go over your contribution room + $2000 additional room provided by CRA.

In my situation, I don't understand if first 60 days of contribution of 2023 will count towards 2022. Because when I use online tool like wealth simpletax, deduction value does not increase more than my limit but I will have to inform my contribution.

If I don't deduct first 60 days of 2023 contribution towards 2022 tax return than my contribution will stay below that $2000 limit. But not sure how this will work. Will CRA automatically consider my first 60 days of 2023 contribution towards 2023 limit as 2022 limit is already full or it will ask me to pay penalty on over contribution of Dec, Jan and Feb.

Thank you in advance for helping!
 
C

caninfoseeker

Hero Member
Aug 25, 2011
765
167
Toronto
Visa Office......
Sydney
What i understand is
1. Either withdraw over contributions and file a form mentioned in the article
2. Pay 1% penalty and apply funds when room opens for next year
call +1-800-959-8281 canada revenue agency to confirm and also update here for the benefit of all.
 
S

spartanking49

Full Member
Sep 19, 2017
34
9
So in my case I did withdraw forHBP in May 2022. Normally I need to start paying back after 2 years but I can contribute early if I want and it doesn't count towards deduction limit. Which I am going to do now , I just have to show that this contribution is toward HBP. This is what CRA recommended.

If you don't have HBP, You will have to discuss further with CRA on this. But as far as I know, there is a way to show first 60 days of RRSP contribution into same year (eg. first 60 days of 2022 contribution into tax year 2022 instead of 2021) but I don't have much information on this.
Found this - How do I claim RRSP contributions from January to March of this tax year? – Help Centre (wealthsimple.com)
 
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