Reached my RRSP limit for Deductions?
Let's just round off a few numbers. If I was to have $8,000.00 left in my RRSP deduction limit for this year, but I bought $11,000.00 worth of RRSP's. What do I do with the remaining $3,000.00.
1---Do I just claim the 8,000 or claim all 11,000.
2---Is it fraud if I do that?
3---Can my spouse claim the extra 3,000 on their income tax?
4---If my spouse can claim it, how do we do it?
- Fred SLv 78 years agoFavorite Answer
1. Yes, you claim the 8,000. You can't claim more than your deduction limit (that's why they call it a "limit").
4. Can't be done.
You're allowed to be $2,000 over the limit at any time, so your excess is only $1,000. If you made at least $1,000 of the contribution in calender 2013, then you have no problem, because you get additional RRSP Deduction each year.
If the entire $11,000 was contributed in 2012, you've overcontributed, and subject to a 1% per month penalty on the $1,000. As 2012, is over, there's nothing you can do but pay the penalty when CRA sends you the bill. Just complete Schedule 7 properly on your return.
Once you clear this up, don't do it again. Wait for your Notice of Assessment each year and contribute exactly what it says. Keeps life simple.