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Request to Waive the 1% Tax on RRSP Excess Contributions — Explanation for Form RC2503
[YOUR FULL NAME]
[YOUR MAILING ADDRESS]
Telephone (daytime): [PHONE] · Email: [EMAIL]
Social insurance number: [SIN]
Canada Revenue Agency
[TAX CENTRE SHOWN ON YOUR NOTICE OF ASSESSMENT OR REASSESSMENT]
[DATE]
Re: Request under subsection 204.1(4) of the Income Tax Act to [WAIVE / CANCEL] the Part X.1 tax on RRSP excess contributions — [YEAR(S)]
Dear Sir or Madam,
I enclose Form RC2503 and [MY T1-OVP-S / T1-OVP RETURN FOR [YEAR] / A COPY OF THE NOTICE OF ASSESSMENT FOR MY T1-OVP DATED [DATE]]. I ask the CRA to [waive the tax before it is assessed / cancel the tax already assessed] of $[AMOUNT] on my RRSP excess contributions for [YEAR(S)], because the excess arose from a reasonable error and I have taken steps to eliminate it.
1. How the excess arose
Month Contribution (+) or withdrawal (−) Plan and issuer Amount
[MONTH YEAR] Contribution [RRSP / SPOUSAL RRSP / PRPP / SPP], [ISSUER] $[AMOUNT]
[MONTH YEAR] Contribution [PLAN, ISSUER] $[AMOUNT]
[MONTH YEAR] Withdrawal of the excess [PLAN, ISSUER] −$[AMOUNT]
My RRSP deduction limit on my [YEAR] notice of assessment was $[LIMIT]. With the $2,000 allowance, contributions above $[LIMIT + 2,000] were excess. My highest excess was $[AMOUNT] in [MONTH].
2. Why this was a reasonable error (§ 204.1(4)(a))
[EXPLAIN SIMPLY AND WITH DATES. EXAMPLES: I relied on the deduction limit on my notice of assessment for [YEAR], which did not yet include a pension adjustment of $… reported later by my employer on [DATE] / my employer made group RRSP contributions through payroll that I did not know counted toward my limit / I contributed to two plans at different institutions and counted one contribution twice.]
I had no intention of over-contributing. As soon as I learned of the excess on [DATE, FOR EXAMPLE FROM MY NOTICE OF ASSESSMENT OR A CRA LETTER], I acted as described below.
3. Steps I took to eliminate the excess (§ 204.1(4)(b))
On [DATE] I [WITHDREW $… FROM MY RRSP AT … / STOPPED MY MONTHLY CONTRIBUTIONS OF $… / ASKED MY EMPLOYER TO STOP GROUP CONTRIBUTIONS]. The excess was fully removed on [DATE] [OR: will be eliminated by [DATE] when my new deduction limit becomes available, as shown in the table].
4. Documents enclosed
The enclosed statements show the exact month of every contribution and withdrawal for [YEAR(S)]. I understand that official RRSP receipts and T4RSP or T4RIF slips do not show this.
[ISSUER STATEMENTS FOR … SHOWING TRANSACTION DATES]
[EMPLOYER LETTER OR PAY STUBS SHOWING GROUP CONTRIBUTIONS]
[NOTICE OF ASSESSMENT FOR [YEAR] SHOWING THE LIMIT I RELIED ON]
I confirm that this information is true and complete.
Yours faithfully,
____________________
[YOUR FULL NAME]
For me
[ ] T1-OVP-S (or T1-OVP) for [YEAR] filed and tax paid by [DATE — 90 DAYS AFTER DECEMBER 31]
[ ] Statements show the month of each contribution and withdrawal
[ ] Excess withdrawn or contributions stopped on [DATE]
[ ] Sent to the tax centre on my notice of assessment on [DATE]