Author Topic: Overcontributed to RRSP, but have HBP- what are my options  (Read 789 times)

kaypinkHH

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Overcontributed to RRSP, but have HBP- what are my options
« on: February 21, 2018, 08:19:16 AM »
The rest of the internet has turned out to be useless for people in my situation...maybe ya'll can help!

Just realized I over contributed to my RRSPs by ~$1500. One of my company share holder accounts is an RRSP account, didn't realize it until I got my tax slip, and had JUST topped up my RRSPs early this month. I realize that I'm within the $2000 over contribution limit, so it is really not a big deal.

I also have a HBP, I have paid 2 years off of it so far. (This would be year 3 I believe).
Mr.HH seems to think that we can use the over contribution to pay more back for the HPB, and not face any penalty. My google fu isn't working, and I can't seem to find this information. Most info online regards to HBP payback early is assuming that I have no money to save. This is not the case.

Help, I need an adult!

bluebelle

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Re: Overcontributed to RRSP, but have HBP- what are my options
« Reply #1 on: February 21, 2018, 09:20:20 AM »
If you're talking about the tax year 2017, contributions you made in Jan/Feb 2018 don't have to count for 2017, you can use them on your 2018 tax year.  You need to report them on your 2017, but they can be carried forward to your 2018 tax return.

It looks like you can designate that money to be a HBP repayment
http://www.givemebackmyfivebucks.com/2015/02/02/pay-back-home-buyers-plan-hbp/
https://help.hrblockonline.ca/hc/en-ca/articles/234578888-Repayments-to-the-Home-Buyers-Plan-HBP-Repayment-

kaypinkHH

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Re: Overcontributed to RRSP, but have HBP- what are my options
« Reply #2 on: February 21, 2018, 09:38:39 AM »
Ah perfect!
Yes this is what I was looking for!

Yes, I was talking about the 2017 tax year. I had a higher than normal income, but also ended up selling a house in a HCOL area, and moving to a LCOL area, so I had a bunch of money to throw at the RRSP. We wanted to top it up to max out the benefit, but now we are getting some last statements and we may have been a bit too crazy, but it looks like HBP room will give us some wiggle room!

Thanks!