RRSP t1-ovp question

[renguomin]

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?

[TurboTaxSusan]

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