RRSP contribution query 2024

[Vabanand]

I have used up my 2023 RRSP contribution room. My question — if I were to make a contribution to my RRSP in January 2024, can this be treated as contribution for 2024 or will CRA view this as overcontribution for 2023? To clarify the amount I contribute in Jan 2024 will be within RRSP room for 2024 based on my 2023 income.

any help related to this query will be greatly appreciated.

[TurboTaxBrenda]

As per the CRA February 29, 2024 is the deadline for contributing to an RRSP for the 2023 tax year. You would need to contribute after the deadline for it to go to your 2024 tax.

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[Vabanand]

First 60 day rule-  In the first 60 days of a calendar year any contribution made to RRSP can be applied either to the previous tax year or to the current year. So I think contribution made in Jan of 2024 can be applied to contribution room of 2023 or 2024. Please let me know if I m not correctly interpreting the rule here.

[TurboTaxBrenda]

You can contribute to your RRSP at any point during the year, plus the first 60 days of the following year. Contributions you make in January and February are deducted from your previous year's income.

As per the CRA Generally, the contribution year is the period that:

• begins on the 61st day of a year, the last 10 months (March to December) of the tax year (ordinarily March 2 to December 31 of the tax year)
• ends on the 60th day of the following year (ordinarily January 1 to March 1 of the following year)

However, the start of a "contribution year" depends on whether the end of the previous contribution year falls on Saturday or Sunday. In such cases, the preceding contribution year ends on the first business day that follows that Saturday or Sunday, and the start of the current contribution year begins on the day after that first business day.

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[Vabanand]

i came across below link which indicates that in step 4 overcontribution room is calculated based on Dec 31 date not the date 60 days later. Therefore, contribution made in first 60 days can be applied to previous year income or current year income. So contribution made in first 60 days of 2024 can be applied to 2024 income and not compulsarily needs to be applied to 2023.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/contribu...

[TurboTaxBrenda]

Please contact the CRA so that they can advise the best way for you to go forward. Call 1-800-959-8281 to get tax information for individuals.

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