My RRSP contribution limit was lowered part way through the year
In mid-March 2014, I maxed out my RRSP contribution based on the room on my 2013 notice of assessment. ($6000)
In December 2014, I received an RRSP deduction limit statement saying that my deduction limit was now reduced by roughly $3,500 to $2,500. The reduction is due to the buyback of past service for pension purposes being finalized which was initiated approximately 3.5 years prior.
Complicating this is that in October 2014, I purchased a home and used the Home Buyers Plan to withdraw $25,000 from my RRSP.
So... based on this reduction in my deduction limit due to a service buyback, I am left with a $3,500 over-contribution to my RRSP.
Can anyone advise whether I can use the $3,500 amount to apply against my HBP repayment in order to avoid a penalty?