We have received a number of T215 PSPA slips, as the date is 2019, my understanding is it should affect the 2020 contribution limit. I have been entering this on RRSPNext on line 7. However, as the subtotal below (line 9) cannot be negative, it does not reduce the unused deduction room from prior year.
Is there a work around to this without overriding, as we do not want to advise clients that they have higher RRSP contribution room than CRA will calculate on the NOA.
T215 is just for the information purpose and no need to report on your tax return, CRA with make the changes to the RRSP limit automatically.
I think what he is asking about is that the “RRSP NEXT” screen is not factoring this in properly and the letter to the client does not have the correct RRSP contribution room. We generally like to advise our clients of their RRSP room before they see a different number on their NOA.
I have this situation, and the PSPA is making the client’s contribution room severely in the negative, and taxcycle is reporting that he has room to contribute in 2020. He contributes monthly, so he is already over-contributed. Unless I am misunderstanding this?
Unless I am misunderstanding this
You are understanding right. As per my knowledge from the CRA website, they will adjust it on their own and it will not effect at same level to everyone. It can be negative for some clients. I always suggest my client to double check with NOA or on “my account” with CRA in few days.
Also when I add amount in line 7 from T215, it is reducing the unused RRSP contribution room from last year.