Author Topic: RRSP Overcontribution & Withdrawl HELP!  (Read 1075 times)

Goldielocks

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RRSP Overcontribution & Withdrawl HELP!
« on: February 20, 2016, 09:30:41 AM »
I need your input.
Last year, I realized that I had overcontributed to my RRSP, by about $6700, which would have shown up on my 2015 tax return.

I want to achieve two goals:
1.  Prevent the over contribution penalty in future of 1% per month until removed.  (If I left it in, it would start to apply in 2016)
2.  Not reduce my future RRSP contribution room.

In anticipation, I sent in the forms to my group RRSP, asking for a return of $5000.   After months and months of back and forth and different forms and calls, I finally received the money as a regular distribution.

I have now been mailed two different RRSP statements, however.  One is for contributions, one shows withdrawl.  For example, one shows $30,000 in contributions and the second shows $5,000 in withdrawl.   

I had wanted to receive a single one showing net contributions..   e.g., $25,000 net contributions.
Why?   Regular withdrawl does not increase your future RRSP contribution room, unlike a TFSA.

Question -- When I file my taxes, I will show it as $25,000 in net contributions for the year.   Will this be wrong?
Am I SOL and will have my Contribution limit reduced by all $30k no matter what?



Retire-Canada

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Re: RRSP Overcontribution & Withdrawl HELP!
« Reply #1 on: February 20, 2016, 09:41:13 AM »
I'd post your question in the CDN Tax thread.

http://forum.mrmoneymustache.com/taxes/can'eh'dian-tax-you-have-questions-i-have-answers/

My GF went through this and it was a hassle to unravel. I don't recall all the forms she had to submit so I can't give you a step by step answer. She's trying to block the experience from her mind so she won't provide a report either! ;)

Goldielocks

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Re: RRSP Overcontribution & Withdrawl HELP!
« Reply #2 on: February 21, 2016, 01:38:09 AM »
Thanks, Retire-Canada.  Maybe I will just call the CRA tax helpline too.

I had hoped that nearly 6 months of various forms was enough to get this resolved....  argh.