Made excession contribution to Spousal RSP by mistake

aziz93144 wrote: ↑ Hi folks, I manage my wife's accounts (have power of attorney).

By mistake instead of contributing to her RRSP, I contributed to the Spousal RSP. I don't have contribution room. Is there a way to correct this without getting hit by penalty/taxes?

how long has it been? there's a $2000 grace amount for overcontribution but assume its more than that.

This happened 15 days ago.

The contribution is much more than $2000.

CRA's website mentions that we can get waivers of tax if the transaction is an honest mistake, but that refers only to RRSP. Here it is a bit complicated as SRSP is involved.

aziz93144 wrote: ↑ This happened 15 days ago.

The contribution is much more than $2000.

CRA's website mentions that we can get waivers of tax if the transaction is an honest mistake, but that refers only to RRSP. Here it is a bit complicated as SRSP is involved.

ask the bank to make a correction.
https://www.canada.ca/en/revenue-agency ... tions.html
https://www.canada.ca/en/revenue-agency ... limit.html

aziz93144 wrote: ↑ This happened 15 days ago.

The contribution is much more than $2000.

CRA's website mentions that we can get waivers of tax if the transaction is an honest mistake, but that refers only to RRSP. Here it is a bit complicated as SRSP is involved.

correct/reverse it asap and you should be ok since recent and an honest mistake

Still within the 60 first days of the year, so the financial institution should have zero issues reversing it. Spousal or personal RSP also makes zero difference in that regard, except maybe they'll ask the beneficiary to sign a document to make sure they agree to give back the contribution that now belongs to them.

We did this to my spousal rrsp as well and asked the bank
to reverse the deposit and they did.

beth1791 wrote: ↑ We did this to my spousal rrsp as well and asked the bank
to reverse the deposit and they did.

Sure, it's better to pay some penalty to the bank, instead of dealing with CRA !!! The problem is GIC was bought!

aziz93144 wrote: ↑ This happened 15 days ago.

The contribution is much more than $2000.

CRA's website mentions that we can get waivers of tax if the transaction is an honest mistake, but that refers only to RRSP. Here it is a bit complicated as SRSP is involved.

IMHO, RRSP or SRRSP should be the same rule

Note that your new room for 2023 (18% of your 2022 income less pension adjustment) became available on January 1, so you may not have overcontributed to your RRSP. You can use your 2023 contribution room now and declare the contributions on your 2022 taxes, but you need to carry the deduction forward to your 2023 or later taxes. But understandable if you'd rather put the contribution into your wife's account now so she can get the deduction for the 2022 tax year.