ARTICLE · 01 JUNE 2015

RRSP Excess Contributions

Collins Barrow National Incorporated

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Are you one of the many Canadians who have inadvertently overcontributed to their Registered Retirement Savings Plans?

CanadaTax

Cheryl Grunswick

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Are you one of the many Canadians who have inadvertently overcontributed to their Registered Retirement Savings Plans? If so, you should be aware that excess RRSP contributions are subject to a penalty tax of one per cent per month of the excess contribution.

What are RRSP excess contributions?

Generally, RRSP excess contributions result when unused RRSP contributions made to the contributor's (or a spouse's or common-law partner's) RRSP plan exceed the RRSP deduction room plus $2,000 (the allowable overcontribution). Unused RRSP contributions and RRSP deduction room can be found on the RRSP Deduction Limit Statement (attached to the Notice of Assessment), or can be obtained online through the CRA's My Account service.

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