Hi Guys,

I have few questions about my 2010 tax return.

In March 2010, I had file tax return for 2009 and I had calculated my RRSP limit (Consider $X) for 2010 tax year before recieving NOA.

In March 2010, I have contirbuted $X for RRSP account.

I have withdrawal $X + $Y (previous balance in RRSP account) in Jun 2010 under HBP plan.

My company had started RRSP plan from 1st July 2010. (I had no idea about this in March 2010. So, I had contributed my full limit in March 2010). To take an advantage of this, I have contributed $2000 from July 2010 to Dec 2010 and company has contributed $1000. Actually, this is not the pension plan. Company will add its contrbution as an income in my T4 slip.

So, my RRSP contribution exceded by $3000.

Questions:
1. Can I use $3000 as unused RRSP and claim next year (2011 tax return) without paying any panelty? if there will be panelty, how much?
2. Can I show $3000 as repayment of HBP loan in my 2010 return if I wish?
3. Consider I have withdraw $15000 under HBP plan in year 2010. So, my minimum repayment per year will be $1000. Which will be the first year for repayment? (Feb 2012 OR Feb 2013)

Thanks in Advance

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Success is Never Ending and Failure is Never Final.

Anyone can comment on this?

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Success is Never Ending and Failure is Never Final.

I am not sure what I am missing here.

I believe I have provided all dates. If you have any specific question, let me know.

If you think $X and $Y is creating confusion, You can replace $X by $10000 and $Y by $5000 and read again.

Thanks

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Success is Never Ending and Failure is Never Final.

I just come to know that there is no panely on excess contribution up to $2000. is this correct?

Do I have to pay panelty on $1000? OR Can I show this amount as repayment of HBP loan?

Thanks in advance..

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Success is Never Ending and Failure is Never Final.

$2,000 lifetime over-contribution limit

If after receiving your statement from CRA, you find that you've made contributions in excess of your contribution limit, there is a "safety net". Over-contributions can remain in your plan without penalty as long as the excess balance is $2,000 or less. (If your over-contribution exceeds $2,000, you may be assessed a penalty of 1% per month on the excess amount.) While you won't get a tax deduction for any over-contribution in the year it is made, you can claim it as part of your contribution limit in subsequent years.

Hope it helps...

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Amit Shah
Financial Advisor
Cell : 647-296-2609

Thanks Amit.

It means I have to pay panelty on $1000.

Do you think I can ask CRA to use this $1000 as repayment of my HBP loan? (Please note that I have withdra RRSP balance in 2010 under HBP)

OR

Do you think withdrawing $1000 before March 2011 can help me to stay away from panelty?

OR

Any other way to stay away from panelty?

Thanks,

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Success is Never Ending and Failure is Never Final.