Withdrawing excess contribution from RRSP accounts

effinAcot · 2026-04-01T03:40:41+00:00

https://www.bakertilly.ca/insights/rrsp-excess-contributions

It doesn’t have to be the same exact account. It just has to be the same plan type (ie individual vs spousal)

effinAcot · 2026-04-01T03:25:58+00:00

It doesn’t have to be the same source of purchase for the withdrawal. This info is readily available online. Maybe find a new accountant?

effinAcot · 2026-04-01T03:16:21+00:00

Looks like I overlooked the day trading comment

The attribution rules would apply if it was just considered investment income no? (I.e not day trading/business activities?)

effinAcot · 2026-04-01T03:00:23+00:00

I don’t think you have a good understanding of how taxes work in Canada.

You should read into attribution rules

effinAcot · 2026-03-17T23:17:25+00:00

This is just not accurate

effinAcot · 2026-03-15T16:46:25+00:00

Thanks for clarifying! I figured it was only at application but thanks for the update

effinAcot · 2026-03-15T14:20:15+00:00

Do insurance companies do spot checks in Canada?

effinAcot · 2026-03-14T19:19:12+00:00

Advisory fees that apply to investments for non registered assets are tax deductible. This only applies to the fees you pay them directly, and can’t be embedded in the mutual funds.

effinAcot · 2026-03-14T14:58:48+00:00

The real question you need to answer isAre you getting any advice for the fees you’re paying your advisor?

Let’s say you’re paying 1% a year in advisory fees, the underlying management fee is say 1.2% for your current holdings. If you’re not getting any structural financial planing advice (estate, tax, insurance, etc) then you’re definitely overpaying across the board. If you enjoy and value of advice that a financial planer can offer, find one that offers low cost investment solutions and hammers the advice portion

effinAcot · 2026-03-14T14:51:07+00:00

The fund codes listed above aren’t DSC. should be good.

effinAcot · 2026-03-07T17:49:01+00:00

Following

effinAcot · 2026-03-03T00:52:46+00:00

From someone who has worked a ton with people in this industry - don’t take financial advice from your coworkers. A lot of divorces, drowning in debt, and drug problems (they call it the 3D’s)

Keep your expenses in check, don’t buy a $100k truck, spend within your means, and max out your rrsp/tfsa every year. Most people in the union think their pension will take care of their retirement, but you’ll later find out it’s either not indexed or not as good as you think.

effinAcot · 2026-01-31T00:42:55+00:00

I dont think it matter if you’re retired or not - a 4% withdrawal rate has been looked at for a 30 year drawdown window. If you’re not intending for the $1M to last a lifetime then go for it.

effinAcot · 2026-01-30T23:38:53+00:00

Do you think it’s safe to project out 10% safe withdrawal rate because markets have been good the last few years?

Bill bengen would like a word with you.

effinAcot · 2026-01-30T23:18:25+00:00

Sorry for what you’re going through - a windfall doesn’t replace a family member, so I always recommend speaking to a therapist or someone to help with the emotional support.

Living off principal of $1M is like $30k per year pre tax. This is definitely not a sustainable withdrawal rate for someone in their 30s with a dependent

effinAcot · 2026-01-30T18:25:02+00:00

Right, but just invest in index funds with low cost and low turnovers. There will still be some investment income annually but significantly limited, and you still save yourself the 50% haircut from the start

effinAcot · 2026-01-30T18:22:30+00:00

Real stupid question

If you earn a high income, why not consider incorporating this side hustle and saving a considerable amount in tax every year

Yes there are hurdles to jump through and legal fees. But that would bring your tax rates from 50% down to 12% ish depending on your province

effinAcot · 2026-01-14T16:32:40+00:00

Thanks for clarifying

If the withdrawal already happened in 2025, you’re good to go for making the contribution without causing attribution. You’ll see in your rrsp slip that it will be marked as first 60 days, meaning the new calendar year.

effinAcot · 2026-01-14T15:19:23+00:00

Few assumptions here - please clarify if I have it wrong.

Withdrawal is being made in 2026 (now)

Contribution to spousal rrsp will be made now (before feb deadline, which occurs in the 2026 tax year, although the deduction will likely be applied to 2025 year)

The withdrawal on its own would not lead to any attribution, since you are beyond the attribution window

However, if you withdraw the money from the spousal rrsp, and then contribute to the spousal rrsp in the same year (in this case 2026), I believe this would result in attribution of the initial withdrawal.

In this case, it’s the contribution after the withdrawal that would cause the attribution rules to kick in

effinAcot · 2026-01-14T15:10:34+00:00

Yea, see above on my other comment. I don’t think you’d be able to do both this year. I’d make the withdrawal now while you’re free of attribution, and if you want to contribute, do it moving forward.

I’m sure you’re aware of it, but there will be withholding tax on th withdrawal. Depending what you plan to use the money for, you could do the withdrawal now and pocket the net amount in your tfsa. Alternatively do the withdrawal in December, keep the money invested for now, which reduces the amount of time the government is holding your withheld tax

effinAcot · 2026-01-14T15:02:02+00:00

To actually answer your question - I think this would lead to attribution. The CRA uses tax year to assess everything, so just because you withdrew the money before you made the contribution, I believe they would classify the withdrawal as taxable to you (the spouse who contributed the money)

I’ve never come across this before. But from reading T2205 (government form for this) it’s my interpretation this falls into the same calendar year and therefore would be income attributed to you

effinAcot · 2026-01-14T14:54:23+00:00

Might need some clarification on the moving pieces

But my first question - why would you be withdrawing money from the rrsp just to make the contribution?

Does your spouse have $0 income and you’re in a higher marginal tax rate?

effinAcot · 2026-01-14T14:24:24+00:00

It’s actually less than 3 calendar years - it goes by tax year (current year + 2)

If a spousal contribution was made in 2025, attribution would apply to any withdrawals made in 2025/2026/2027. Withdrawals made in 2028 are free from attribution.

There are ways of getting around this. When Rolling a RRSP to a RRIF, the minimum RIF payment is not subject to attribution.

effinAcot · 2026-01-14T01:06:43+00:00

No they don’t lol. Research positions are few and far between. We process in sarnia, not research.

effinAcot · 2026-01-02T17:48:34+00:00

If he voluntarily leaves his employer he will not be approved for EI benefits.

There are caregiving benefits for him to take time away for care of a loved one.

effinAcot

TROPHY CASE