You did everything right by withdrawing it quickly. If you wish you can call the Canada Revenue Agency to speak to them about your bank's decision at 1-800-959-8281.
How do you fix over-contributions to your RRSP?
If you went over (it happens!), honesty is the best policy.
First, familiarize yourself with the T3012A form because you’ll need to fill it out before doing anything else. This form tells the CRA that you accidentally went over your RRSP deduction limit and asks for approval to take out the excess amount from your RRSP provider.
Here’s how it works:
- Fill out parts one and two of the form and then send four copies to your local tax centre.
- After the CRA has approved the amount your RRSP provider can refund (without witholding tax), the CRA will fill out part three of the form and return three copies to you.
- Once you receive the forms back from CRA (with part 3 filled in), fill out part four and send all three copies to your RRSP provider.
- Your RRSP provider fills out part five and returns two copies to you.
Can you carry forward RRSP over-contributions?
No. Instead, you’ve got to fix it ASAP. That means taking out any RRSP over-contributions to avoid paying the penalty of 1% per month. (which you have done)
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