The cost of exceeding your allowable RRSP contribution
Under the Income Tax Act, contributions to an RRSP that exceed your RRSP/PRPP deduction limit by more than $2,000 can result in harsh penalties. Generally, the taxpayer will be subject to a tax of 1% per month on the excess amount until the excess amount is withdrawn from the RRSP. In situations where a taxpayer … Read more
