If you overcontribute to your RRSP by $2,000 or less, the Canada Revenue Agency will allow you to keep the money in your RRSP without penalty. However, this amount will not be deducted from your taxable income.

There is a 1% monthly penalty for overcontributions greater than $2,000, until the amount is withdrawn or your limit covers the excess contribution.

For more information, consult our page on maximum RRSP contributions.