tbbd Posted February 22 Report Share Posted February 22 Hi All, In 2023 I made my full RRSP contribution for the 2023 tax year. In Jan and Feb of this year (2024) I made the full contribution thinking it was possible to direct that as my contribution for the 2024 tax year, but I'm getting an "over contribution" warning from Ufile presumably because we're still in the first 60 days of 2024 and so it's applying the 2024 contribution to the 2023 tax year. I was under the impression that contributions in the first 60 days of a calendar year could be applied to either the previous calendar year's tax return or the current calendar year's tax return. Am I wrong and I have now over contributed to the 2023 tax year (which I have not yet filed)? Quote Link to comment Share on other sites More sharing options...
clw Posted February 23 Report Share Posted February 23 I am afraid so. You are allowed a lifetime RRSP overcontribution of 2000$. Any amount above this is penalized at a tax rate of 1% per month until you can alot the excess to future contribution room. tbbd 1 Quote Link to comment Share on other sites More sharing options...
tbbd Posted February 23 Author Report Share Posted February 23 OK, thanks for the reply. Do you know how I can allot the amount to future contribution room? Would that space not be opening up soon on March 1 anyway? So do I just leave the amount in there and only take the 1% penalty for the month or so that I have overcontributed? Quote Link to comment Share on other sites More sharing options...
clw Posted February 23 Report Share Posted February 23 Yes that would be the way to proceed. But I am not sure how the CRA enforces the penalties. I would call them anonymously, and just ask a general question about how to proceed; if the over contribution is small, they may waive the penalty. Quote Link to comment Share on other sites More sharing options...
davidg2023 Posted February 23 Report Share Posted February 23 I think you can also withdraw the overcontribution before the deadline, i.e. now, but I'm the opposite of an expert. Quote Link to comment Share on other sites More sharing options...
clw Posted February 23 Report Share Posted February 23 Yes, you can withdraw as well, but depending on how the RRSP is invested, this can be more costly, than paying the penalty for just a few months. Quote Link to comment Share on other sites More sharing options...
Zad Posted March 24 Report Share Posted March 24 My first 60 days of 2024 is $30,504 and want to use only $26,000 for 2023 tax filing so that I do not exceed my RRSP deduction limit of $33,321. I see the First 60 days of 2024 bucket but don't see any carry over to tax year 2024 bucket. Please advise how to split my 1st 60 days 2024 contribution. I should have a choice to decide if I want to use 1st 60 days contribution to 2023 tax year Quote Link to comment Share on other sites More sharing options...
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