Let's say you
earned enough in 2013, the year you turned 71, to generate $10,000 of
contribution room for 2014. If you contribute $10,000 to your RRSP
in December of 2013, you will pay a penalty of $80 (1% x ($10,000-$2,000))
for the one month end of the excess contribution. Excess
contributions over $2,000 are subject to the penalty. As of January
1, 2014, it will no longer be an excess contribution, and the $10,000 can
be deducted on your 2014 tax return.
If you have earned income and thus contribution room
after age 71, you can make contributions to the RRSP of a spouse who is 71
See also: RRSP
conversion to RRIF
Tip: It may be advantageous to
over-contribute to your RRSP in December of the year you turn 71.
Revised: April 05, 2014