davidg2023 Posted February 25, 2023 Report Share Posted February 25, 2023 Since I retired this year, my financial advisor advised me to include an extra $2000 in my RRSP contribution; that is, $2000 more than my available contribution. He said I could overcontribute by $2000 once in my life. Ufile does seem to agree that I can overcontribute by $2000 without penalty, but it doesn't consider the $2000 in my tax refund. It warns me that I overcontributed. Looking at Schedule 7 in the "Tax Return" tab, in Part A it shows the total contribution that I made, but in Part B it calculates the allowable contribution (without the $2000) and carries that over to line 20800 on my return. Did I goof by making the overcontribution, i.e. it's without penalty but also without a deduction? Or, is there a way to override and put the actual contribution on line 20800? Or...? Edit: It occurs to me that I could override by adding $2000 when I tell ufile my RRSP deduction limit, but that seems to be cheating. I tried, and it did add $742.26 to my total federal/Quebec refund. Quote Link to comment Share on other sites More sharing options...
clw Posted February 25, 2023 Report Share Posted February 25, 2023 Ufile behaves correctly, over-contributions are not tax deductible, but you are not penalized. Quote Link to comment Share on other sites More sharing options...
BLSM Posted February 28, 2023 Report Share Posted February 28, 2023 Can you deduct that 2,000. next year, when it's no longer an over-contr. ? Quote Link to comment Share on other sites More sharing options...
clw Posted March 1, 2023 Report Share Posted March 1, 2023 BLSM, if you have contribution room, the answer is Yes. Over-contribution occurs when you have reached your maximal allowable RRSP contribution cieling. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.