I have over-contributed to my RRSP for the year 2012 by about $5,000. I did this unintentionally, since I was away when I asked my financial planner to buy my RRSPs. What is the recourse for this now? Can you please advise me what to do and what my options are?
You need to complete a CRA form T1-OVP, which can be found here.
You make the declaration to CRA and once they have acknowledged the over-contribution, they will give you permission to withdraw the amount from your RSP. This is the best way to avoid a penalty of 1 per cent for each month that the over-contribution stays in your RSP.
Nancy Woods is an associate portfolio manager and investment adviser with RBC Dominion Securities Inc. Visit her website www.nancywoods.com or send an email request to firstname.lastname@example.org. You can send your questions to email@example.com as well.