Pension adjustment overcontribution?
This is an odd situation. My wife was on maternity leave all of 2019, but her employer said she can still contribute to her RPP (with cheques), and they will do their normal match. I though this was great since she had a large RRSP deduction limit/contribution room (they were equal) for 2019 as per her NOA for 2018.
So, her NOA for 2019 looks something like this (made up numbers but proportional to real):
Furthermore, on the CRA website, under Calculation of 2020 RRSP deduction limit, Step 2: Calculation of additional deduction limit based on 2019, it says something like:
Any help would be appreciated.
So, her NOA for 2019 looks something like this (made up numbers but proportional to real):
- RRSP deduction limit for 2019 .........$100,000
- Minus: Allowable RRSP contributions deducted for 2019 .........$20,000 (this is from the RRSP contributions we made throughout 2019)
- Plus: 18% of 2019 earned income, up to a maximum of $27,230 ......... $2,000 (this was 18% of her mat leave top-up that she received through 2019)
- Minus: 2019 pension adjustment ..... $5,000 (this was the value of the cheques we wrote for the RPP contribution + match by her employer)
- RRSP deduction limit for 2020..... $80,000
Furthermore, on the CRA website, under Calculation of 2020 RRSP deduction limit, Step 2: Calculation of additional deduction limit based on 2019, it says something like:
- 18% of 2019 earned income .... $2,000
- Minus 2019 pension adjustment ....$5000
- Equals Additional deduction limit based on 2019.... $0 (cannot be less than zero)
Any help would be appreciated.