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Samira2
Returning Member

T4RSP: I added the amount as income, the problem, TurboxTax didn't reduce my RRSP contribution with the amount I withdraw. The RRSP slip didn't remove also the withdraw

Ex:RRSP contribution: 20k, RRSP slip:20k
T4RSP:5k
Why turbotax don't do: 20k-5k for RRSP contribution
7 Replies

T4RSP: I added the amount as income, the problem, TurboxTax didn't reduce my RRSP contribution with the amount I withdraw. The RRSP slip didn't remove also the withdraw

Are you using TurboTax CD/Download or TurboTax Online?

Samira2
Returning Member

T4RSP: I added the amount as income, the problem, TurboxTax didn't reduce my RRSP contribution with the amount I withdraw. The RRSP slip didn't remove also the withdraw

I am using Turbotax online. Thank you

T4RSP: I added the amount as income, the problem, TurboxTax didn't reduce my RRSP contribution with the amount I withdraw. The RRSP slip didn't remove also the withdraw

When you withdraw from your RRSP (before retirement), it doesn't reduce the contributions that you make during the year or in previous years. It reduces your lifetime contribution room. If you take out $5000 from your TFSA, then you can contribute that $5000 back the next year, so your lifetime contribution room will end up the same. But if you take out $5000 from your RRSP, then you will never be able to put that money back in. 

Samira2
Returning Member

T4RSP: I added the amount as income, the problem, TurboxTax didn't reduce my RRSP contribution with the amount I withdraw. The RRSP slip didn't remove also the withdraw

Thank you Susan but I donā€™t get it, I withdraw 5k from RRSP because I exceeded my limit. My understanding when you exceed your contribution limit, you have to withdraw to correct. Here is an example:

RRSP limit contribution: 15 k

i contributed 20k than I withdraw 5k to correct but didnā€™t use the form T3012A.

if I put my RrSP contribution is 20k, I have to pay penalties, does it mean unless I use the form T3013A, my withdraw doesnā€™t correct the situation.

thank you for your patience.

Samira

T4RSP: I added the amount as income, the problem, TurboxTax didn't reduce my RRSP contribution with the amount I withdraw. The RRSP slip didn't remove also the withdraw

If you have over contributed, you should use the T3012A form. It will not be fixed using your tax return.

Samira2
Returning Member

T4RSP: I added the amount as income, the problem, TurboxTax didn't reduce my RRSP contribution with the amount I withdraw. The RRSP slip didn't remove also the withdraw

Sorry to insist, I withdraw the 5 k in may 2023 because I knew there is going to be a problem of exceeding limit RRSP for 2023. now do I fill the form T3012A for this 5k taken last year or for a new amount to withdraw again? Sorry I am confused 

T4RSP: I added the amount as income, the problem, TurboxTax didn't reduce my RRSP contribution with the amount I withdraw. The RRSP slip didn't remove also the withdraw

For more information, please see our TurboTax article: How to Resolve RRSP Over-Contributions.

 

For further clarification please contact the Canada Revenue Agency (CRA) by calling 1-800-959-8281.

 

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