Personal Finance

RRSP - January February Contributions

  • Last Updated:
  • Dec 13th, 2013 10:17 pm
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Newbie
May 9, 2013
65 posts
118 upvotes
Toronto

RRSP - January February Contributions

Hello Everyone,

I just started working in Canada mid last year (2012). Lets say last year (2012 income) I accumulated RRSP contribution room of 6K and by 31st December 2013 I will have contributed exactly 6K into my RRSP. In January and February 2013 I will be contributing 3K (monthly 1.5K PPP). Can I deduct the 3K from my 2013 RRSP room (in 2013 I worked full year hence I will have 12K RRSP room)?

Disclaimer: the numbers used here are hypothetical

Cheers everyone, and Happy Holidays!
7 replies
Sr. Member
Jun 9, 2006
836 posts
83 upvotes
Thornhill
russ007 wrote:
Dec 13th, 2013 12:11 pm
Hello Everyone,

I just started working in Canada mid last year (2012). Lets say last year (2012 income) I accumulated RRSP contribution room of 6K and by 31st December 2013 I will have contributed exactly 6K into my RRSP. In January and February 2013 I will be contributing 3K (monthly 1.5K PPP). Can I deduct the 3K from my 2013 RRSP room (in 2013 I worked full year hence I will have 12K RRSP room)?

Disclaimer: the numbers used here are hypothetical

Cheers everyone, and Happy Holidays!
Yes.
Sr. Member
Dec 28, 2007
569 posts
129 upvotes
Yes--you should declare your jan-feb contributions on your 2013 taxes ("contributions made in the first 60 days" box), but do not claim the deduction. That amount ($3k) will show up on your 2013 notice of assessment as an "unused contribution", which you can then deduct on your 2014 or later taxes.
Member
Aug 17, 2008
286 posts
92 upvotes
Quebec
Can you deduct the 3000 $ from 2013 RRSP room? NO

You can deduct 6000 $ in 2013, thats the maximum. As JUnit says, you will deduct that 3000$ on 2014 taxes.
Deal Addict
User avatar
Oct 23, 2006
3285 posts
506 upvotes
Winnipeg
Related question:

I've maxed out my 2013 contributions this year already.

January and February of 2014 I will start my biweekly contributions for 2014.

When I file my 2013 taxes do I need to mention these contributions even if they are for 2014?
Deal Addict
User avatar
Jan 31, 2006
3769 posts
300 upvotes
Toronto
sr79 wrote:
Dec 13th, 2013 3:13 pm
Can you deduct the 3000 $ from 2013 RRSP room? NO

You can deduct 6000 $ in 2013, thats the maximum. As JUnit says, you will deduct that 3000$ on 2014 taxes.
Its not $6000 but $8000, If you never contributed to your RRSP or did not over contributed. There is a ONE TIME $2000 over contribution.
Member
Aug 17, 2008
286 posts
92 upvotes
Quebec
cgtlky wrote:
Dec 13th, 2013 9:04 pm
Its not $6000 but $8000, If you never contributed to your RRSP or did not over contributed. There is a ONE TIME $2000 over contribution.
Yes there is a 2000$ over contribution but you cannot deduct that over contribution in 2013. So the maximum he can deduct in 2013 is still 6000$
Sr. Member
Dec 28, 2007
569 posts
129 upvotes
coleworld wrote:
Dec 13th, 2013 6:21 pm
Related question:

I've maxed out my 2013 contributions this year already.

January and February of 2014 I will start my biweekly contributions for 2014.

When I file my 2013 taxes do I need to mention these contributions even if they are for 2014?
Yes, as I described above, you should declare the jan-feb contributions on your 2013 taxes, but claim the deduction in 2014 or later.
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