[Bob Kerr]

I would like suggestions of how you deal with clients that that continually over subscibe for RRSP. One thinks it is OK to buy 1st 60 days in 2007 & save for 2007. Others may just be in ignorance or denial & buy without reference to RRSP room available. I feel the Financial instutions have a responsibility to properly advise customers on tax consequences of their annual purchases. What is the community feeling

Bob Kerr
Port Moody BC

[spenceh]

Bob Kerr, on Apr 28 2007, 08:28 PM, said:

I would like suggestions of how you deal with clients that that continually over subscibe for RRSP. One thinks it is OK to buy 1st 60 days in 2007 & save for 2007. Others may just be in ignorance or denial & buy without reference to RRSP room available. I feel the Financial instutions have a responsibility to properly advise customers on tax consequences of their annual purchases. What is the community feeling

Bob Kerr
Port Moody BC

I noted a lack of responsibility in this area among the financial institutions for years. One client tried for 3 years to get the bank to help him withdraw his surplus. Finally he gave up trying. They basically told him not to worry about it. Now he's 72 and still has almost $3,000 in undeducted RRSP's, no opportunity for deduction and likely massive penalties with CRA. Anyone want to hazard a guess if the bank will help with the penalties? <_< lol

[Bob Kerr]

Thanks for the reply but I realy want to know what practioners do in similar situations

Bob Kerr

[RL Tax Joe]

spenceh, on Apr 28 2007, 10:17 PM, said:

I noted a lack of responsibility in this area among the financial institutions for years. One client tried for 3 years to get the bank to help him withdraw his surplus. Finally he gave up trying. They basically told him not to worry about it. Now he's 72 and still has almost $3,000 in undeducted RRSP's, no opportunity for deduction and likely massive penalties with CRA. Anyone want to hazard a guess if the bank will help with the penalties? <_< lol

Perhaps the tax practitioner would have reduced the overage way back when from RRSP withdrawls or RIF withdrawls.

[spenceh]

RL Tax Joe, on Apr 28 2007, 11:17 PM, said:

Perhaps the tax practitioner would have reduced the overage way back when from RRSP withdrawls or RIF withdrawls.

Client was doing his own returns at that time. :(

However, I haven't had a chance to deal with more than the current year info to date. Hope to help the client resolve this next month, one way or the other. For his sake, I hope we have options to minimize the penalties.

I've never dealt with a situation like this before, so...

Assuming there have been some subsequent withdrawals, is it still possible to reduce the overage after the fact? If so, how?

(And no, I haven't done my homework yet but since it came up here, I thought I'd ask.)

[RL Tax Joe]

spenceh, on Apr 29 2007, 08:06 AM, said:

Client was doing his own returns at that time. :(

However, I haven't had a chance to deal with more than the current year info to date. Hope to help the client resolve this next month, one way or the other. For his sake, I hope we have options to minimize the penalties.

I've never dealt with a situation like this before, so...

Assuming there have been some subsequent withdrawals, is it still possible to reduce the overage after the fact? If so, how?

(And no, I haven't done my homework yet but since it came up here, I thought I'd ask.)

T1 Adjustments might be in order

[DanC]

RL Tax Joe, on Apr 29 2007, 03:47 PM, said:

T1 Adjustments might be in order

Take a look at T746 - much simpler to implement than the T1-OVP