Warning - Over contributions to RRSP
The program generates a warning when your RRSP
contribution exceeds your "RRSP/PRPP deduction limit for
2019 (per 2018 assessment)", and a
first warning telling you "You will not get any tax benefit
from this overcontribution".
The excess contribution will be transferred to
Schedule 7, Part D entitled "RRSP/PRPP unused
contributions available to carry forward".
Part C of Schedule 7 will tell you the amount
you can contribute on line 20800 of the federal return.
To remove the second warning, go back to the
"Interview" tab and in the "Left side menu on the
Interview tab" and select "RRSP contributions, limits'',
and enter the amount you can contribute according to your notice of
assessment for the previous year.
On the page on your right, go to the line "RRSP or
PRPP/VRSP deduction to use (leave blank to use all your
contributions as a deduction)" and enter the maximum amount you
can contribute.
However, if in the "Review" tab and a warning
will be generated informing you that your RRSP contribution exceeds
your deductible maximum and if it exceeds $ 2,000 you are subject
to penalties.
However, the CRA will may assess monthly penalties of
1 % on your over contribution.
Certain rules apply on unused RRSP contributions, we
recommend you visit the following link for more information:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/contributing-a-rrsp-prpp/what-happens-you-over-your-rrsp-prpp-deduction-limit.html
In addition, we suggest that you contact the CRA to explain your
situation and to obtain information to correct the situation, in
order not to be penalized if possible.
ID: 20200309075939DE.xml
Webpage: KPA385-20200309075939DE.htm