Question
Mechanical answer on excess RRSP contributions
I thought that my FY22 RRSP contribution limit was based on calendar year 2022. However, I have learned that it is not and so I have contributions I need to report from January 1, 2022 to March 1, 2023 and the total of those is about $3,038 over my limit. Some of the excess contribution over $2k was made in this month, February 2023.
What are my best options right now to get ahead of this? Do I withdraw the amount in excess of $2,000 right now and on my tax return indicate that I over contributed or do i indicate just the amount of the over contribution after my withdrawal ($2,000 or less)?
In terms of my wtihdrawal, Let's say I take out ~$1,000. Will there be a 10% withholding tax on that amount that I can then claim as "taxes paid" for my 2023 return?
Overall just looking for the best strategy to do this right now and all the necessary paperwork that needs to be filed to be in compliance.
Thank you
What are my best options right now to get ahead of this? Do I withdraw the amount in excess of $2,000 right now and on my tax return indicate that I over contributed or do i indicate just the amount of the over contribution after my withdrawal ($2,000 or less)?
In terms of my wtihdrawal, Let's say I take out ~$1,000. Will there be a 10% withholding tax on that amount that I can then claim as "taxes paid" for my 2023 return?
Overall just looking for the best strategy to do this right now and all the necessary paperwork that needs to be filed to be in compliance.
Thank you
