RRSP contribution room $0 (+$2000 lifetime excess limit allowed per CRA) for 2021 since started working for the 1st time moved in Jul 2021.
Without knowing the contribution room concept assuming RRSP same as 401K, enrolled in RRSP thru employer on day1 with 5% payroll deductions and 5% employer match after 90days. My current account balance currently sits at ~$1200 as of today plus elected bonus deposit to RRSP which will make it >$2K. There is No RPP provided by employer (only RRSP).
Now, after reading this thread, realized I already overcontributed excluding lifetime $2K excess limit. Also, I will come under non-resident for tax purposes due to stay in Canada for less than 183 days in the tax year (2021) per canada.ca
I know one of the option would be stop contributing immediately so the balance will sit at $1.2K, won’t exceed $2K (lifetime limit allowed).
The other option is to pay 1% penalty for each month exceeding contribution room so in my case balance exceed $2K approximately starting October so the penalty levied for Oct, Nov & Dec months that need to be paid by Mar 2022 as the contribution room becomes 18% of 2021 income starting Jan 2022 per canada.ca
I’ve an upcoming appt this week with RRSP advisor thru employee assistance program, but fingers crossed.
considering taking advantage of employer 5% match and non-resident for tax purpose, Can anyone share their experiences to go for any better options in my situation?
@panditji @rangarajanm @srhere @MissMapleFry @rndmdude @jayhop @avj @j9lad @usa2can