Author Topic: Canadian RRSP Over-contributions! Anyone have experience?  (Read 1834 times)

Self-employed-swami

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Canadian RRSP Over-contributions! Anyone have experience?
« on: March 18, 2015, 08:01:36 AM »
Apparently, I've been over-contributing to my RRSP for about 5 years (the problem started in 2010 tax year, when I made an over-contribution and my previous accountant didn't fill out a form correctly to generate the contribution room).  My current accountant is going to try and go back and amend the returns (which will cost me $$$) or I can take the extra ~$6,000 out (I am $8,000 over the allowable amount), and pay all the penalties (to the tune of 1% of the amount over $2,000 per month, for the last 5 years) unless the CRA is feeling generous, and decides to wave the penalties.  :/

So, I'm wondering if anyone has experience with RRSP over-contrbutions, and CRA being lenient with the penalties, when you take the extra out...

The problems of savers....


I think the way the CRA online login words these things, is terrible, as it doesn't say over-contribution, just that you have some unused deductions to carry forward to the next year, which sounds like a good thing, right??

Bah! No wonder everyone hates the CRA!

Retire-Canada

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Re: Canadian RRSP Over-contributions! Anyone have experience?
« Reply #1 on: March 18, 2015, 08:50:49 AM »
The GF had similar problems and I am sad to say it was a long and expensive process to finally get her RRSP back on track. CRA had no sympathy for her.

Both her accountant and her financial advisor screwed up.

I don't know what the best plan of attack is for you. Sorry.

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GuitarStv

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Re: Canadian RRSP Over-contributions! Anyone have experience?
« Reply #2 on: March 18, 2015, 08:55:08 AM »
Buy a house!  Then you can take money out of your RRSPs and you get a HBP repayment plan.  Overcontributions can be claimed as early repayment of the HBP.

beee

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Self-employed-swami

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Re: Canadian RRSP Over-contributions! Anyone have experience?
« Reply #4 on: March 18, 2015, 05:30:45 PM »
Buy a house!  Then you can take money out of your RRSPs and you get a HBP repayment plan.  Overcontributions can be claimed as early repayment of the HBP.

Hmmm.  I'm not planning on buying another house right now.  And since we already own one, we can't use the home buyers plan :/

Self-employed-swami

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Re: Canadian RRSP Over-contributions! Anyone have experience?
« Reply #5 on: March 18, 2015, 05:32:02 PM »
Check out this link:
http://business.financialpost.com/2012/01/11/did-you-over-contribute/

I saw that.  Unfortunately, it's been a long-standing issue that both my old and new accountants missed, so I doubt I'll get leniency from CRA.