RRSP over-contribution and HBP repayment

[adman_1345]

I did not check my RRSP contribution limit for 2024 (which is way lower than 2023) and I received a bonus from my employer bigger than expected that was directly deposited in my RRSP in December 2024.
Over-contribution is $16,000 and I just realized it now while filing for taxes.
What are my options?

Can I fix it by allocating this amount to my HBP repayment? I usually repays the minimum of $1,500. What is the down side of doing this?

Would I still need to pay a 1% penalty for December, Jan, Feb and March? 

Thanks for your help!

[TurboTaxSusan]

You should contact the Canada Revenue Agency (CRA) and confirm with them that designating the over contribution as an HBP repayment will eliminate all penalties.

If you are in Canada or the United States, you can call the CRA at 1-800-959-8281. If you are elsewhere, you can call 613-940-8495. This page has more ways to contact the CRA: Contact the Canada Revenue Agency

[adman_1345]

Thank you! I reached out to the CRA and after a bit of research on their end, they confirmed that I could allocate the RRSP excess contribution to my HBP repayment - I will not incur any penalty as long as the RRSP over contribution does not exceed my HBP remaining balance.