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eccountant
Level 2
posted
‎March 08, 2021 08:23 AM
last updated ‎March 08, 2021 8:23 AM

RRSP Overcontribution during 1st 60 days of the year

Hi All,

 

If for eg. the RRSP limit is $100K for 2020, but someone contributes $110K on Feb 2021, that person has over contributed by $10K but I read a lot of forums that as the person has contributed during the 1st 60 days of 2021 the person doesn't have to worry about the penalty tax of 1% over and above $2K because he can leave the $10K and not use to deduct his income and carry it forward and he doesn't have to go through the process of filing T1-OVP and withdrawing the funds by filing T3012A.

 

Your response is much appreciated.

 

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Best answer March 08, 2021
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Jack_Canada
Level 6
‎March 08, 2021 11:56 AM

RRSP Overcontribution during 1st 60 days of the year

As long as that person's RRSP limit for 2021 is at least $8,000, I don't see any problem. If fact, it's smart to make an RRSP contribution as early as possible.

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1 Comment 1
Jack_Canada
Level 6
‎March 08, 2021 11:56 AM

RRSP Overcontribution during 1st 60 days of the year

As long as that person's RRSP limit for 2021 is at least $8,000, I don't see any problem. If fact, it's smart to make an RRSP contribution as early as possible.

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