Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
PRINCIPAL ISSUES:
Whether over-contribution to RRSP may be deducted in years following maturity of RRSP.
POSITION TAKEN:
Yes.
REASONS FOR POSITION TAKEN:
Wording of 146(5) of the Act. Follow-up letter to correct wrong interpretation in 9322715.
LEGAL:
FINANCE OPINION:
JURISPRUDENCE:
RCT PUBLICATIONS:
HAA NUMBER:
7255-3
Dear XXXXXXXXXX
This is further to our letter of August 27, 1993, in which we replied to your letters of August 5 and August 12, 1993, concerning excess contributions made to your registered retirement savings plan (RRSP). We wish to correct an error we made in our reply.
In the fourth paragraph of our letter we advised that you could make deductions respecting your $XXXXXXXXXX over-contribution "up to and including the year in which your RRSP's mature (i.e. the year in which you turn 71 years of age)."
This is incorrect. You may continue to deduct amounts that you over- contributed to your RRSP so long as you have "earned income" in the previous year. Although your RRSP will mature in the year you turn 71 years of age, you may still deduct amounts contributed in earlier years, up to the amount of your RRSP deduction limit for any particular year.
On page 2 of our letter, we discuss the option of withdrawing the over- contribution pursuant to subsection 146(8.2) of the Income Tax Act. This option is still available to you but would only be of interest if you are no longer in receipt of "earned income" and therefore will not be able to deduct any further amounts.
Please accept our apologies for any inconvenience our error may have caused you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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