RRSP Overcontribution
Moderator: Mark T Serbinski CA CPA
RRSP Overcontribution
I had over contributed to my RRSP while living in Canada and didn't realize it for a few years. I now live in the States. I have withdrawn the over contribution and 25% tax was withheld. I will turn 59 in 2020, but not 59 1/2. Does anyone have experience with this? What is the best way to deal with the penalty? Can I work through this myself or do I need to contact an accountant or a lawyer? How do I address the withdrawl on my 2020 IRS return? Thank you.
Re: RRSP Overcontribution
There are no age restrictions on RRSP withdrawals, that only applies to US pension schemes, so there is no penalty.
The RRSP withdrawal is taxed in US based on what the value was when you became US taxpayer vs, its value when you took the withdrawals. 100's of posts here on doing that calculation.
The RRSP withdrawal is taxed in US based on what the value was when you became US taxpayer vs, its value when you took the withdrawals. 100's of posts here on doing that calculation.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: RRSP Overcontribution
Thank you very much! I have seen other posts with the calculations so I will give it a shot!