topic RRSP Over-contributed Question in Filing

RRSP Over-contributed Question

DMTDust2 — Sun, 21 Apr 2024 20:26:46 GMT

I had $6300 contribution room for 2023 and accidentally contributed exactly 10k. However, $7800 was contributed in Jan and Feb 2024.

I've read mixed answers online as to whether or not this amount (or some of this amount) could be carried forward to deduct on 2024. I'm looking to determine my options to avoid the 1% penalty, which by my math would be 17 a month until the next tax year.

Any ideas Canada tax filers?

Re: RRSP Over-contributed Question

TurboTax_Susan — Sun, 21 Apr 2024 22:59:18 GMT

Yes, if you over-contribute to your RRSPs, the amounts will carry forward so you can claim them in a future year. But you would be liable for the 1% penalty as long as you are in an over-contributed state.

This CRA webpage explains how to deal with an Excess Contributions: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/contributing-a-rrsp-prpp/what-happens-you-over-your-rrsp-prpp-deduction-limit.html

Re: RRSP Over-contributed Question

AmolDare — Tue, 21 Jan 2025 00:31:16 GMT

If you've made a lump-sum contribution to your RRSP in January 2025, and you only have one receipt for that contribution, it's still possible to allocate part of it to your 2024 tax year and part of it to your 2025 tax year. The key here is that the CRA allows you to choose how to distribute contributions made in the first 60 days of the year (from January 1 to March 1) between the previous tax year (2024) and the current tax year (2025).

This answer is from ChatGPT. Is this correct?