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New Member
posted Oct 31, 2019 12:17:12 AM

RRSP/RRPP carry forward excess, how do I adjust so that I do not have to pay they the penalty

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Level 15
Oct 31, 2019 12:17:13 AM

You'll need to report the entire amount of your RRSP Contribution on your tax return, and TurboTax will automatically carry forward the amount in excess of your contribution limit to the following year. The Canada Revenue Agency allows you to overcontribute to your RRSP's one time in the amount of $2,000 without there being a penalty.  You can claim the overcontribution on your income tax return next year. 

If your overcontribution exceeds the $2,000, (or you have previously overcontributed $2,000 or more), you may be required to pay the 1% tax per month on the excess contributions, or you can choose to withdraw the excess. 

Here's some information from CRA on what happen's if you exceed your contribution limit: https://bit.ly/2HWYMU3