What happens if I go over my RRSP limit?
The first $2,000 over is allowed; above it, 1% a month: $2,800 over costs $8 a month on the $800 past it.
RRSP past the $2,000 CRA allows
$800
See how
Room$11,200
Contributed$14,000
Over$2,800
Allowed without tax$2,000
Taxed at 1% a month$800
Each month$8
The $2,000 applies if you were 18 or older at any time last year. It covers all your excess contributions together, not $2,000 a year.
The tax is reported on form T1-OVP within 90 days after the end of the year, and runs until new room covers the excess or it is withdrawn.
An RRSP excess usually comes from a pension adjustment left out of the count, or a contribution in the first 60 days counted for the wrong year.
Sources
- CRA — What happens if you go over your RRSP deduction limit
- CRA — How contributions affect your RRSP deduction limit
Checked against the CRA’s pages on .