Unused RRSP contributions

What’s in this article?

 

What is this?

Your unused Registered Retirement Savings Plan (RRSP) contributions are contributions you made to your RRSP or to your spouse’s or common-law partner’s RRSP and did not deduct on any previous income tax return. This may occur if you have contributed more than your RRSP deduction limit. The unused RRSP contributions are carried forward to future years.

The total of all unused RRSP contributions is identified as Amount (B) on your notice of assessment (NOA) or reassessment or is shown on the T1028: Your RRSP Information for 2015 that Canada Revenue Agency (CRA) sent to you after assessing your prior year income tax return.

 If you have unused RRSP contributions in 1991 and later tax years, you have two options:

  • You can leave the unused RRSP contributions in the plan; or
  • You can withdraw unused RRSP contributions.

In either case, you may have to pay a tax of 1% per month on the part of unused contributions that are excess contributions (contributions more than $2,000 over your RRSP deduction limit). If you withdraw the unused contributions, you have to include them as income on your tax

You must report new unused RRSP contributions on Schedule 7: RRSP and PRPP Unused Contributions, Transfers, and HBP or LLP Activities with your income tax return.

 

Am I eligible?

If you made RRSP contributions and did not deduct these contributions on any previous income tax return, you have unused RRSP contributions.

Your unused RRSP contributions can be found on your latest notice of assessment or reassessment or on the T1028 that CRA sent to you after assessing your income tax return. You can also log in to CRA’s My Account service or contact CRA to obtain your unused RRSP contributions amount.

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

    1. Click the PREPARE tab.
    2. Click the YOUR YEAR IN REVIEW icon. You will find yourself here:


    3. Click the checkbox labelled I contributed to an RRSP/PRPP or have unused contributions.
    4. Scroll to the bottom of the page and click Continue.
    5. Click the RRSPS & INVESTMENTS icon. You will find yourself here:


    6. Under the RRSPS section, click the checkbox labelled Contributions to RRSPs or any other retirement fund or account (Schedule 7).
    7. Scroll to the bottom of the page and click Continue.
    8. On the Contributions to RRSPs or any other retirement fund or account page, enter your unused RRSP/PRPP contributions in the field labelled Unused RRSP/PRPP contributions available for 2015.

Note: Your unused RRSP contributions for 2015 is Amount B of your latest Notice of Assessment or Notice of Reassessment or can be found on your T1028: Your RRSP/PRPP information for 2015.

 

Where can I learn more?