RRSP t1-ovp question

renguomin — Thu, 15 May 2025 22:16:56 GMT

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?

Re: RRSP t1-ovp question

TurboTax_Susan — Tue, 20 May 2025 18:49:59 GMT

The T1-OVP is not available in TurboTax, so we can't advise on how that form works. You can contact the Canada Revenue Agency (CRA) and ask them.

If you are in Canada or the United States, you can call the CRA at 1-800-959-8281. If you are elsewhere, you can call 613-940-8495. This page has more ways to contact the CRA: Contact the Canada Revenue Agency

topic RRSP t1-ovp question in Deductions & credits

RRSP t1-ovp question

Re: RRSP t1-ovp question