The RRSP deadline for 2018 is coming up quickly. The deadline to contribute to an RRSP and have those contributions applied to your 2018 income taxes, is 11:59PM on March 1st, 2019.
You can find your Registered Retirement Ravings Plan (RRSP), Pooled Registered Savings Plan (PRPP) deduction limit, often called your “contribution room” by going to:
- Form T1028, Your RRSP Information for 2018 – The CRA would send a Form T1028 if there are changes to your RRSP deduction limit since your last assessment
- My Account
- MyCRA mobile app
- Tax information Phone Service (TIPS)
Your “Available contribution room for 2018” amount can be found on the RRSP Deduction Limit Statement, or on your latest Notice of Assessment (NOA) or Notice of Reassessment
CRA My Account
If you are registered for the CRA My Account, you can find your deduction limit by clicking “Go to RRSP and TFSA” from the RRSP and TFSA section in the Overview page. Your RRSP deduction limit appears at the top of the next page.
You can even find your deduction limit for prior year’s, by clicking “View RRSP details”, and on the next page clicking “Prior years RRSP deduction limits”.
Notice of Assessment
You can find your RRSP contribution room on your most recent NOA or Notice of Reassessment received from the CRA. It would look something like this;
Call the CRA
If you have misplaced your NOA and are not registered for My Account, you can call the automated CRA TIPS line at 1.800.267.6999.
If you are still unable to locate your contribution room, you can attempt to calculate it. Your RRSP contributions during the contribution period beginning March 2018 to March 1st, 2019 do not exceed 18% of your earned income from the prior year (2017).
Bryan has made RRSP contributions from March 2018 – March 1st, 2019 of $7500.
Bryan and his wife had a baby, and no one in their household has been getting any sleep, so when it came time to determine the contribution limit, Bryan could not find that information at all.
Bryan’s earned income for 2017 as Chief Publicist for Purple Squirrel Enterprises was $68,000
Bryan’s RRSP contributions cannot exceed 18% of his earned income, or $68,000 x 18%. (68,000 x .13 = 8,840)
Bryan is able to enter $7,500 into his RRSP contributions because his Contribution Limit is $8,840. Bryan still has available space of $1,340.
If you accidentially over-contribute to your RRSP, the CRA will penalize you 1% on your excess contributions per month.
There are some things you can do to help minimize the penalties and stress of over-contributing. The first thing you should do is to act fast. The quicker you notify the CRA of your mistake, the fewer penalties you will face.
You can either pay the CRA what you owe them, or you can quickly withdraw the amount you have over-contributed and then ask the CRA if they will waive the penalty.