Can I carry over the first 60 days of 2020 RRSP contribution to 2020 tax year

[vinwang]

Hi guys,

I am trying to contribute to my RRSP limited room maximum for withdrawing when buying the first house in 2020, but I just realize that my contributed RRSP during the first 60 days of 2020 will be over the left RRSP room(over part would be within $2000).

I did some research online, someone said that I could elect the first 60 days contribution of 2019 to defer to 2020. My question is how to do that on ufile? Is there any detailed tutorial or someone did this before?

Thanks in advance for any reply.

[clw]

You are correct; you can over-contribute by 2000$ over the lifespan of your RRSP, without any penalties. Also, in any given year, you can choose de deduct or carry forward your contributions to minimize your taxable income. You do not need to deduct in the year you contributed.

[vinwang]

2 minutes ago, clw said:

You are correct; you can over-contribute by 2000$ over the lifespan of your RRSP, without any penalties. Also, in any given year, you can choose de deduct or carry forward your contributions to minimize your taxable income. You do not need to deduct in the year you contributed.

Thank you very much for your reply. I appreciate it!

Could you please let me know if there is any option on Ufile I could elect to defer the first 60 days contribution to 2020? I don't find how to do that on Ufile.

Thank you!

[clw]

You enter your contributions for 2019 and the first 60 days of 2020. After, you can manually enter the lesser amount you choose to deduct for 2019. The difference will be carried forward by Ufile to next year. 

[vinwang]

On 2/15/2020 at 7:01 PM, clw said:

You enter your contributions for 2019 and the first 60 days of 2020. After, you can manually enter the lesser amount you choose to deduct for 2019. The difference will be carried forward by Ufile to next year. 

Thank you for your reply.

I look through RRSP contributions section on Ufile. You said 'After, you can manually enter the lesser amount you choose to deduct for 2019', do you mean manually enter the lesser amount in the section - 'RRSP or PRPP/VRSP deduction to use' under 'RRSP or PRPP/VRSP detuction to use in 2019'?

One more question: For example, if my RRSP contribution from Mar to Dec 2019 is $31,000, but my 2019 RRSP deduction limit is $30,000, which means I has over contributed $1,000 during Mar to Dec 2019. Can I manually input just $30,000 in RRSP or PRPP/VRSP detuction to use in 2019, even though the $1000 I contributed not from first 60 days of 2020?

[clw]

That is correct; you specify the amount you want to use for 2019, and the balance of your contributions will be carried over to a future year. Yes, to the second question as well but you are deducting large amounts; be careful that you are not over deducting! You should simulate with different RRSP deduction  amounts to see how it influences your taxable income. An RRSP deduction that reduces your taxable income to zero is the maximum you should deduct. Any excess should be carried forward, assuming you will gain RRSP contribution room (by working) in future years. Take care.

[vinwang]

3 hours ago, clw said:

That is correct; you specify the amount you want to use for 2019, and the balance of your contributions will be carried over to a future year. Yes, to the second question as well but you are deducting large amounts; be careful that you are not over deducting! You should simulate with different RRSP deduction  amounts to see how it influences your taxable income. An RRSP deduction that reduces your taxable income to zero is the maximum you should deduct. Any excess should be carried forward, assuming you will gain RRSP contribution room (by working) in future years. Take care.

Thank you so much for your answers. That helps me a lot!