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RRSP contribution in the first 60 days of the current year



just need to make sure…

say I have RRSP room of $15,000 for 2015 (from NOA), and make a contribution of $15,000 in April 2015. This January, forgetting that I already contributed, make another $15,000 contribution, which bring me to a total of $30,000. And I also have income in 2015, which will create more room for me for 2016, say $10,000. When filing the 2015 tax return, both contributions need to be report, even though I want to claim the 2016 contribution for year 2016. So is CRA going to start the penalty of over contribution starting Jan 2016? And how much am I over contribute? is it $13,000 (since we can go over by $2000), or is it $3000 (since I will have extra $10,000 room for 2016).

Thanks in advance,


In my experience, the answer is B, $3000


CRA definitely wants you to put both years on your tax return so you would enter the 2016 contribution in your 2015 return. However the penalty is only on the $3,000.00 since as you said you have $10,000.00 more room starting Jan 1, 2016. The penalty is based on the monthly over contribution amount so the the faster you withdraw the over contribution the better and obviously you want to make sure that no other contributions are made in 2016. I would recommend they withdraw the full $5,000.00.