Posted on: 23-02-10 12:46:33
CRA is saying that this year I am shut out of contributing to RRSP. I spoke to them and was told that due to the pension and over contribution of RRSP in Feb 2008, this year it would be zero contribution. I paid the penalty also for the over contribution in 2008. My accountant also spoke to CRA along with me. He’s unable to explain properly to me why I cant put money before March 1.
Am I missing anything here or should look for another accountant?
KM
try varma from mississauga. I have sent you details thro. pm
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The best way to find yourself is to lose yourself in the service of others.”
Mahatma Gandhi
Quote:
Originally posted by KumarM
CRA is saying that this year I am shut out of contributing to RRSP. I spoke to them and was told that due to the pension and over contribution of RRSP in Feb 2008, this year it would be zero contribution. I paid the penalty also for the over contribution in 2008. My accountant also spoke to CRA along with me. He’s unable to explain properly to me why I cant put money before March 1.
Am I missing anything here or should look for another accountant?
KM
I would suggest you meet an investment advisor instead of accountant. Since you already paid for this years RRSP contribution (though you paid the penalty, you cannot reclaim that contribution room again) - and if you have more funds for investing, RRSP is not the avenue for you.
Please note that contributing to RRSP in excess and paying the penalty may NOT be the wisest way to save on taxes...
Good luck.
Hiren
Pension contributions reduce RRSP room.
That may be your case as well.
Note that employer contributions count as well and if your employer matches 100% you may not have much (any) RRSP room.
If that's the case, there's nothing your accountant or an investment advisor can do.
As hchheda said, RRSP is not the only (and sometimes not the best) investment avenue.
You could do TFSA, if you haven't already done so, or do regular un-registered investment account.
Your pension contribution may already have given you the maximum possible tax deduction.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Last evening me and my accountant had another long chat with CRA. I have misplaced my assessment for 2008 that reflects my RRSP. Anyways, due to the Past Service Pension Adjustment (PSPA), my contribution to RRSP is zero this time. CRA agent told my accountant to fill out a form (lengthy one) to address the PSPA. At least I now have some time to put off the worry abt the taxes.
(not to say that he is pissed off since he has to fill out another lengthy govt form)
KM
