# RRSP Contributions in First 60 Days of Calendar Year



## EngPhysGuy (Jul 9, 2015)

Hello,

Up until last year I had included all contributions of the first 60 days of the calendar year when I filed taxes in April. However, last year I accidentally missed a small amount due to the new reporting structure at the financial institution (not blaming anyone.. it was my own fault!). 

I thought that because it was in the first 60 days of 2016 I had the choice to report on my 2015 or when I report my 2016 later this year, so was just going to wait. After doing some further reading recently though it seems like I may need to file an adjustment to the 2015 return to get these included.

My question boils down to, do all RRSP contributions in the first 60 days of a calendar year NEED to be reported in the previous years tax filing? 

Thanks.


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## gardner (Feb 13, 2014)

EngPhysGuy said:


> My question boils down to, do all RRSP contributions in the first 60 days of a calendar year NEED to be reported in the previous years tax filing?


The CRA would say yes, they have to be reported. But my experience is that you don't actually have to and you can go ahead and report it in the "body" of 2016 and nothing bad will happen. I have in fact done this many times in the past.

But down the road the CRA also has the records from the bank and will scratch their heads when what you tell them and what the bank tells them don't match -- this could attract extra scrutiny. It also becomes an excuse for them to start sniffing around much later later, maybe a decade later, if the schedule 7 you filed does not match what they think it should have, based on what the bank told them. This also I have experience with.

In the end I would say just report it as being in the body of 2016 for the 2016 tax year and try not to make the same mistake going forward.


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## EngPhysGuy (Jul 9, 2015)

Thanks for the quick reply. I guess that makes things a little bit trickier when it comes to calculating contribution room, though I maintain my own records so it shouldn't be too bad. 

Just to be clear then - when I got my 2015 Notice of Assessment and it tells me I have $xxxxx.xx contribution room available in 2016, that actually means I have this much room available until March 1, 2017?


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## OnlyMyOpinion (Sep 1, 2013)

EngPhysGuy, Did you see the very similar recent discussion thread here?: 
http://canadianmoneyforum.com/showthread.php/107761-2016-RRSP-Maxed-Out-and-Over-Contribution-in-Jan-amp-Feb-2017
Not a lot of detail on your circumstances but you are correct, 'typically' you should be able to claim J-F 2016 as contributions for 2015 or for the current year 2016 (within the limits of your 2016 contribution room). 
Hopefully you have not just contributed the full amount for 2016 without considering that J-F 2016 amount, but if you have, report it all (both), claim only your 2016 limit, and then claim the remainder of J-F 2017 in this tax year.


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## EngPhysGuy (Jul 9, 2015)

Thanks again. I do still have some room left, so it's not a big deal, just trying to wrap my head around it all. I also still have some unused contributions, so this missed amount would just increase that further.

Sounds then like the correct way would be to go back and file an adjustment to my 2015 return and add in these missed amounts. As long as I don't change my RRSP deduction amount then nothing else should change except for an increase to my unused contributions. I'd need to take this into account as well as my Notice of Assessment should show my 2016 available contribution room as smaller by this delta.


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## gardner (Feb 13, 2014)

EngPhysGuy said:


> I have this much room available until March 1, 2017?


No, contribution room goes by calendar year. This is what makes me crazy trying to dance the CRA's first 60-days retroactivity dance.

The contribution room number you got on your 2015 assessment was for calendar year 2016.
The one they eventually give you on your 2016 assessment will be for calendar year 2017. Anything you're putting in now, even though it's in the first 60 days, goes against the new 2017 limit, even though the CRA hasn't told you yet what your limit will be.

Contribution room doesn't expire, so you have forever to use it.


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## Eclectic12 (Oct 20, 2010)

gardner said:


> EngPhysGuy said:
> 
> 
> > ... However, last year I accidentally missed a small amount due to the new reporting structure at the financial institution (not blaming anyone.. it was my own fault!).
> ...


I suppose another question is ... is it of benefit to claim the missed RRSP contribution against the 2015 tax return?

If so, then an adjustment to the contributions as well as deductions would have to be made. With the ability to do this online through "My Account" - I wouldn't see it as a big deal.




EngPhysGuy said:


> ... when I got my 2015 Notice of Assessment and it tells me I have $xxxxx.xx contribution room available in 2016, that actually means I have this much room available until March 1, 2017?


Depends on whether the 2015 NOA caught the missed RRSP contribution that would normally have reduced the 2016 RRSP contribution room number, IMO. 

If it was caught, then the 2016 RRSP contribution number will be correct, with the missed small RRSP contribution showing up as something like "unused RRSP contributions made and available to deduct for 2016". If it wasn't, the 2016 RRSP contribution number should be larger than the real number, with no mention of $$$ available to deduct.

In years past, CRA used to group it in ways that helped them but could potentially confuse the tax payer. The "Image of RRSP/PRPP Deduction Limit Statement" available at this link suggests they have made it a bit clearer.
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/cntrbtng/lmts-eng.html


BTW ... the "until March 1, 2017" seems misleading. There's no expiry until one turns 71 or so for RRSP contribution room. The Mar 2017 is the deadline for being able to apply that contribution to tax year 2016.

If you follow the thread OnlyMyOpinion lists in post #4, you will see there is some disagreement as to when the past year's income RRSP contribution room is added. I believe it is Jan of the year after while others seem to think it is when the tax return is filed so that the NOA can document what the past year's income as well as other RRSP contribution room factors were.


Cheers


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## EngPhysGuy (Jul 9, 2015)

Thank you all. This is clear to me now.


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