If you exceed your RRSP deduction limit by $2,000 or less, the Canada Revenue Agency may, under certain conditions, allow you to keep the excess in your RRSP without penalty. However, this amount will not be deducted from your taxable income.

Contributions that exceed the deduction limit by more than $2,000 may result in a tax of 1% per month until the situation is corrected.

For more information, please refer to our page on Maximum RRSP contribution.