Over contribute RRSP for 6000$ in Jan 2024 and withdraw in the same month, how do I deal with 2023 tax on Turbotax?

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:

1. Fill out parts one and two of the form and then send four copies to your local tax centre. 
2. 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.
3. 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. 
4. 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)

 

Thank you for choosing TurboTax.

Hello,

 

Thanks but I'm confused about your reply.

 

T3012A form is something filled before I withdraw the exceeded money and take withhold tax, correct? Since I already withdrew the money and paid for withhold tax, do I still need to fill it out?

 

Also, can you clarify how to report such part on Turbotax? Turbotax will defiintely put this 6000$ RRSP into 2023 return, how do I report I have withdrew them in same month?

For clarification as to what the CRA will need after the steps you have already taken, please call the Canada Revenue Agency (CRA) at 1-800-959-8281.

 

Thank you for choosing TurboTax.