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ARTICLE · 12 DECEMBER 2019

RRSP Over-Contributions: No Mercy, No Relief

Moodys Private Client Law
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The Federal Court of Appeal's recent decision of Patrick Connolly v Minister of National Revenue (herein "Connolly v. MNR") highlights the serious onus the taxpayer...

CanadaEmployment and HR
Aasim Hirji
Aasim Hirji
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INTRODUCTION

The Federal Court of Appeal's recent decision of Patrick Connolly v Minister of National Revenue (herein "Connolly v. MNR") highlights the serious onus the taxpayer bears to understand and apply the complexities and nuances of the Income Tax Act (Canada) (the "Act") rules as they relate to the common and recurring issue of over-contributions by taxpayers to their respective Registered Retirement Savings Plans ("RRSPs").

LEGISLATION & POLICY PROVISIONS

RRSP & OVER-CONTRIBUTION

Generally speaking, a taxpayer's RRSP contribution limit for a given tax year is calculated at 18% of his/her prior year's earned income1, less any "pension adjustment"2 from a taxpayer's employer, plus any unused RRSP contribution room carried over from prior years.

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