Newcomer to Canada - Mistakenly contributed to RRS...

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New Member

Newcomer to Canada - Mistakenly contributed to RRSP


I am a newcomer to Canada and moved in Feb 2018. I was not aware that I should not contribute to RRSP in the first year since I will not have any contribution limit. But I contributed to my personal RRSP plan. While filing taxes, I understood that I may have over contributed to the plan and 1% penalty would apply on my contribution. 

Would I be able to withdraw my contribution from RRSP without paying any penalty? If so, could you please let me know the process like informing CRA or any thing like that? 

Also, my wife's employer contributed to her RRSP. Can that be withdrawn without any penatly?

Thank you,


2 Replies
New Member

Newcomer to Canada - Mistakenly contributed to RRSP

Hi Karthik,

Welcome to Canada! 

There is no penalty for withdrawal from an RRSP, but it's worth noting that RRSP withdrawals count as income and are taxable at income tax rates. Your financial institution will withhold between 5-10% of the withdrawal for taxes (depending on your province). 

You will also have to pay a penalty for excess contribution to the RRSP for each month that you were over the limit. It's worth noting that you would owe the penalty only for the months you were over the limit. For example, if your new RRSP space in January exceeds the amount you contributed, then you won't owe a penalty for the months of January onwards, but you would owe the penalty for previous months. You would need to fill out the following form to determine the exact amount to send to the CRA along with any paperwork: .

Please encourage your wife to reach out to her employer re: the contributions they made for her. 

Level 1

Newcomer to Canada - Mistakenly contributed to RRSP

Hi, I am in a bit of a different situation. I moved to Canada in July 2019 and already filled my taxes for 2019. Now I got a different Job in May 2020 and the employer as per contract is to contribute 8% of my annual salary for RRSP (Group plan). I have not deducted any RRSP contributions for my 2019 tax return. Can my employer proceed with the RRSP contributions? I would be filling these contributions next year for my 2020 tax return. My current contribution room for 2019 is $0.00. Would I be penalized for puting money towards an RRSP in this case?