I’ve already done my investing for this RRSP year (March 2001 - February 2002) to maximize my contributions.
I’ve just started a new job and I found out that if I start up in the company mutual fund and invest $900 by the end of the year, the company will match that investment (my contribution will count for the current tax year, the company contribution is done in March, so will be part of my 2002/2003 contributions).
Obviously, this is a great deal that I would want to take advantage of. Can I do this and be $900 over my maximum allowable contribution? Are there penalties?
You can put in up to $2000 over your maximum allowable contributions (of 18% gross income I believe) penalty-free; it’s a good idea, you’ll only be $900 over :). If you put in more than that, I think the penalty is something like 10% plus 1% per day - so you take it back out real fast :eek:.
but I think that you can make the contributions and claim them in a later tax year. It means that you are paying the tax on the $900 now, but get to claim it later when you may be in a higher tax bracket. The limit mmmiiikkkeee mentions may apply to this as well.