Severance Pay to RSP question

Looking for some clairification on a severance pay to RSP scenario that I can't seem to get a straight answer to.

Last year (2014) I contributed to my maximum RSP deduction limit (eg. $10K).  On Feb 1/2015 I am expecting a severance allowance for my loss of employment.  If I elect to move that allowance (say $10K) to my RSP, will this be considered an over contribution to my RSP and therefore be subject to fees???  Or if I move that allowance to my RSP and NOT claim it until next year, would I then be clear of any penalty fees?

Thanks in advance.

Answer

I would suggest talking to an accountant on the options available. The type of severance may make a difference, or how it is handled by your employer.

Was this answer helpful? Yes No
Original
SuperUser

No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community