Overcontributed to your RRSP? We help Canadians file T1OVP returns, reduce or eliminate 1% per month penalties, and resolve RRSP overcontributions with CRA.

Thousands of Canadians make the mistake of contributing too much to their Registered Retirement Savings Plan (RRSP) often without realizing it until they receive a CRA warning letter or see a penalty on their Notice of Assessment.

The CRA requires individuals who exceed their RRSP contribution limit by more than $2,000 to file a T1OVP return and pay 1% per month on the excess contribution even if the excess was accidental.

At TaxHelp.ca, we help you:

• Prepare and file T1OVP returns
• Eliminate or reduce RRSP overcontribution penalties
• Apply for CRA relief where applicable
• Withdraw excess funds properly to minimize taxes
• Avoid audits and long-term tax issues

If you’ve received a letter from the CRA, made a large lump-sum contribution, or used multiple RRSP accounts it’s time to act.

What Is a T1OVP Return?

The T1OVP Individual Tax Return for RRSP, PRPP and SPP Excess Contributions is a special return that must be filed if you contributed more than $2,000 above your RRSP limit.

It calculates:

• Your excess contribution
• The 1% per month penalty tax
• Any applicable deductions or relief measures
• The period of time the overcontribution was in the account

Even if you later withdraw the excess, the CRA still requires the T1OVP to be filed.

T1OVP Due Date:

The T1OVP is due 90 days after the end of the calendar year in which the overcontribution occurred.

If you’re late filing, you may face additional penalties and interest, including:

• 5% of balance owing, plus
• 1% per month for up to 12 months
• Daily interest on the unpaid tax
• Potential gross negligence penalties (50%) in extreme cases

What Triggers RRSP Overcontributions?

RRSP overcontributions can happen for many reasons, including:

• Contributing to multiple RRSPs without coordination
• Making a lump-sum contribution in anticipation of future room
• Getting a bonus late in the year that changes your allowable limit
• Transferring funds incorrectly between retirement accounts
• Employer matching or PRPP contributions not properly tracked
• Misreading your CRA MyAccount RRSP limits

Some people only discover the problem years later, when the CRA audits their RRSP history or when they receive a T4RSP slip for a withdrawal they didn’t expect.

Our Process: How We Fix an RRSP Overcontribution

1. Review Your Contribution History

We gather your RRSP room history from CRA (via Represent a Client or CRA MyAccount), including:

• Contribution limits
• Past contributions
• Withdrawals
• Pension adjustments and transfers

2. Prepare the T1OVP Return

We calculate the excess contribution, the number of months of overage, and prepare the complete T1OVP package for submission.

3. Plan a Withdrawal (if needed)

We guide you through making a designated withdrawal of the excess amount using Form T3012A or Form T746, depending on the situation.

This helps you:

• Avoid immediate withholding tax
• Report the withdrawal properly
• Minimize taxes on the refund

Strategies to Minimize Tax on RRSP Overcontributions

While the rules are strict, there are tax planning opportunities when dealing with RRSP overcontributions:

✔ Designated Withdrawals

Use Form T3012A to withdraw excess amounts without withholding tax if approved in time.

✔ Properly Time Withdrawals

Withdraw the excess in the same tax year or shortly after to limit 1% monthly penalties.

✔ Offset with Future Room

If the overage occurs late in the year and you’ll have additional room the next year, we can help structure the timing to avoid unnecessary penalties.

Get Help With Your T1OVP Return Today

The longer you wait, the more penalties pile up. Let us handle your overcontribution problem.