Warning - Over contributions to RRSP
The program generates a warning when your RRSP
contribution exceeds your "RRSP/PRPP deduction limit for 2021
(per 2020 assessment)", and a second warning that the
program will limit your contribution to the eligible
amount.
The excess contribution will be transferred to Schedule 7, Part
D entitled "RRSP/PRPP unused contributions available to carry
forward".
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''.
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.
Go back to 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: 20210830105928DE.xml
Webpage: KPA385-20210830105928DE.htm