I already contributed in my employer group RRSP in 2017 but will not claim RRSP deduction in Apil 2018 tax filling.
1) Will there be a problem specially when money in this group RRSP is below $2000 over-contribution limit ?.
2) Should I continue or stop further RRSP contribution for 2018 as my RRSP will hit $2000 in Feb. 2018 and my contribution room for 2018 will be known to me only after I files taxes in April 2018 ?
If the amount is within the $2000 cushion, you will not be penalized. As to continuing to contribute in 2018, you may wish to complete your 2017 tax return and see what your limit for 2018 is first.
Just to clarify...as long as you had working income (income from employment and/or self employment) in 2017, then you will have RRSP contribution room in 2018. How much is a calculation based on the 2017 earned (working) income...thus my advice to wait until you have completed your 2017 return and learn your 2018 RRSP limit.
Perfect @TurboTaxJeffrey . Really appreciate your quick response and guidance. Thank You !!
Hi @New_Immigrant ,
This year I am in the same situation as you mentioned above.
Could you please confirm how did you proceed and how much was the penalty, if any?
I have not filed my taxes yet.
Thank you!