Changed Tax return - RRSP overbuy

octane99 · Post by **octane99** » Fri Nov 14, 2008 6:19 pm

Nelson,

If I changed the tax return in 2005 which I should file a departure return. Therefore, the RRSP limit I can buy in 2006 drops too. However, I have bought the full amount in 2006 based on the original 2005 return. In this case, How would CRA treat this kind of case?

Thank you for the reply.

nelsona · Post by **nelsona** » Sat Nov 15, 2008 7:05 am

They will recalculate your RRSP contribution limit for 2006, and assess you 1% per month penalty on any overcontribution you made in excess of $2000, each month until you either take the excess out or you generate sufficient contribution room (which is alsomst impossible as a non-resident).