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Thread: Overcontribute to RRSP?

  1. #41
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    Quote Originally Posted by HiSpec View Post
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    I miscalculated my contribution this year and I am hoping I can forward a portion of it to my spouse when I complete my income tax.
    Not possible. You would have to withdraw from your RSP (if you overcontributed) and recontribute to her RSP account. The tax receipt you got/get will say that you are the contributor with your SIN # on it so you can't attribute it to her. If you didn't go over your limit then just carry forward to 2021 tax year for any contributions you made in the first 60 days.

  2. #42
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    The above is correct. Note that there is a cushion. You will only be penalized if you over contribute more than $2,000.

  3. #43
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    Quote Originally Posted by skandalouz_08 View Post
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    Not possible. You would have to withdraw from your RSP (if you overcontributed) and recontribute to her RSP account. The tax receipt you got/get will say that you are the contributor with your SIN # on it so you can't attribute it to her. If you didn't go over your limit then just carry forward to 2021 tax year for any contributions you made in the first 60 days.
    you are not obligated to withdraw the funds, but there is a tax penalty you must pay (T1-OVP has the details)

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    Quote Originally Posted by prae View Post
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    you are not obligated to withdraw the funds, but there is a tax penalty you must pay (T1-OVP has the details)
    Which is different from TFSA where you have to withdraw the overcontributed funds.
    Quote Originally Posted by BavarianBeast View Post
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    Could have been over 60% if I wasn’t a paper hand bitch

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    Quote Originally Posted by nzwasp View Post
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    Which is different from TFSA where you have to withdraw the overcontributed funds.
    Why? You will just be taxed if you don't, just like an over contribution to an RRSP.

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    Quote Originally Posted by Disoblige View Post
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    Why? You will just be taxed if you don't, just like an over contribution to an RRSP.
    According to our accountant you get penalized per month until you take your over contribution out. My family member went over by 20k.
    Quote Originally Posted by BavarianBeast View Post
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    Could have been over 60% if I wasn’t a paper hand bitch

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    Quote Originally Posted by nzwasp View Post
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    According to our accountant you get penalized per month until you take your over contribution out. My family member went over by 20k.
    Right.

    But you said it's somehow different from a RRSP. They are both the same in terms of penalization. You get a tax penalty until you take it out.



    Quote Originally Posted by prae View Post
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    you are not obligated to withdraw the funds, but there is a tax penalty you must pay (T1-OVP has the details)
    Quote Originally Posted by nzwasp View Post
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    Which is different from TFSA where you have to withdraw the overcontributed funds.

  8. #48
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    Quote Originally Posted by nzwasp View Post
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    According to our accountant you get penalized per month until you take your over contribution out. My family member went over by 20k.
    That is true- but the penalty ends once the year rolls over and you can use those registed-but-unused RRSP contributions. So if you overcontribute by a huge amount early in the year, and catch it quickly, yes, it may be worth it to withdraw the funds. But if you're doing well with whatever they're invested in, again, you're not obligated to remove the funds and could simply pay the tax penalty.

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