Hello, turbotax community, I would like to ask a question about the rrsp overcontribution and t1-ovp calculation.
Consider the following hypothetical scenario:
1. In June, I over contributed $15,000. (In May I was not over-contributed. The $15,000 exceeded portion is transfered in June). I realized it, then I withdraw $20,000, within the same month.
2. I fully understand that withdrawl DOES NOT grant/restore my contribution room.
3. Now because I still have ZERO contribution room, I cannot contribute anything until the next year.
4. However, in the t1-ovp partA, it seems that my withdrawl is carried over to the future months, which brings line 6 of all my future months down $20,000. which means even I contribute $5000 more without a "official contribution room", I will still not be penalized.
So, basically, I can still contribute $5000 without penalty, but the $5000 contribute just can't be used to deduct tax (as there is no official room left). And the total unused contribution for this year will be 0 too (because I overcontributed $15000+$5000 and I withdraw $20000 so they even out).
Is my understanding correct?
