# HOOPP PSPA and RRSPs



## TwoTrack (Nov 13, 2019)

My wife has an awesome HOOPP defined benefit pension plan.

Recently (actually 2018, but the CRA notices about RRSP room were just issued), there was a Past Service Pension Adjustment for all of HOOPP - about $18k for her. 

Being fiscally responsible, I had maxed out what room she had for RRSPs, so the $18k PSPA results in negative contribution room. Of $18+k. which typically would mean penalties of 1% per month of over contribution.

However, since it was an 'exempt' PSPA, normally nothing needs to be done, it just means she can't contribute to RRSP until there is positive room again, even if it's 5 yrs or more, don't need to withdraw money, no penalties, etc. And we didn't contribute for 2019.

_This is the bit i have a question about:
_
She has $1300 ish unused contributions available to deduct from previous years. (i've used the $2000 over contribution buffer for years to get that extra little bit of tax deferred growth). So the total is now negative $19300.

*Do we have to withdraw the $1300?*

I've called HOOPP who can confirm the basic PSPA exemption doesn't trigger a requirement for the $18k to be withdrawn, but cannot comment on $1300

My first call to CRA was a little disappointing, the person told me we had to withdraw the $18k + the $1300 in January 2020. Both. But didn't really seem to know, was just reading a few things and suggested "to be safe you should just withdraw from RRSP". I will be following up again with CRA.

Any thoughts / knowledge from CMF?


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## TwoTrack (Nov 13, 2019)

Crud. I was hoping for some insight. I'm pretty sure I'll be withdrawing the $1300 only.


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