charlesting
New member
Hello PFC,
Just got my tax return and NoA, and appear to have ~$6k over.
2022 NoA indicated $5,750 available RRSP contribution room for 2023.
2023 NoA indicates 2023 RRSP deduction limit = $7,252, minus 2023 RRSP contributions = $5,408. Therefore unused 2023 RRSP contribution room = $1,844
However, in 2023 I received a Past Service Pension Adjustment (PSPA) = $12,779. I have a HOOPP pension.
It then states my unused room ($1,844) + additional room gained in 2023 ($4,869) = $6,713 MINUS the PSPA - $12,779.
So, now shows a $-6,066. Or overcontributed by $6,066.
I wouldn't have overcontributed if not for the PSPA. I understand there is a $2k over contribution "cushion".
I have no idea how to proceed, whether I should make a RRSP withdrawal, or leave the funds and possibly pay the 1%tax? I have halted contribution now, but have put in about $2850 already this year (2024). No idea on how to calculate which wouldbe the better option, or the worse option. If leave the $$ in the RRSP, how long until the 1% tax drops off? I've read about this T1-OVP, but unsure of how to go about??
I made $138k gross ($95k salary + $42k part time grind) in 2023. Expect to be in the $125-$140k range going forward.
Thanks in advance, ehh
Just got my tax return and NoA, and appear to have ~$6k over.
2022 NoA indicated $5,750 available RRSP contribution room for 2023.
2023 NoA indicates 2023 RRSP deduction limit = $7,252, minus 2023 RRSP contributions = $5,408. Therefore unused 2023 RRSP contribution room = $1,844
However, in 2023 I received a Past Service Pension Adjustment (PSPA) = $12,779. I have a HOOPP pension.
It then states my unused room ($1,844) + additional room gained in 2023 ($4,869) = $6,713 MINUS the PSPA - $12,779.
So, now shows a $-6,066. Or overcontributed by $6,066.
I wouldn't have overcontributed if not for the PSPA. I understand there is a $2k over contribution "cushion".
I have no idea how to proceed, whether I should make a RRSP withdrawal, or leave the funds and possibly pay the 1%tax? I have halted contribution now, but have put in about $2850 already this year (2024). No idea on how to calculate which wouldbe the better option, or the worse option. If leave the $$ in the RRSP, how long until the 1% tax drops off? I've read about this T1-OVP, but unsure of how to go about??
I made $138k gross ($95k salary + $42k part time grind) in 2023. Expect to be in the $125-$140k range going forward.
Thanks in advance, ehh