Home Retirement Glossary Over-Contribution Allowance

Retirement


DEFINITION

Over-Contribution Allowance

An amount of excess contributions permitted in Canada to a Registered Retirement Savings Plan (RRSP) without incurring a tax penalty. A taxpayer can contribute up to the amount of their deduction limit, plus an excess contribution as long as the total excess contribution never exceeds $2,000. Any excess contribution over $2,000 may be subject to a 1% per month tax.

RESOURCES

DID YOU KNOW?

62% of people are not financially ready for retirement. QuickPlan for tablets is an easy to use tool that allows you, within minutes, to assess your own retirement readiness and to forecast your finances for the long term.





    Please wait...