T4RSP: I added the amount as income, the problem, TurboxTax didn't reduce my RRSP contribution with the amount I withdraw. The RRSP slip didn't remove also the withdraw

Forum|Forum|2 years ago
March 17, 2024
1 reply
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Ex:RRSP contribution: 20k, RRSP slip:20k
T4RSP:5k
Why turbotax don't do: 20k-5k for RRSP contribution

TurboTaxSusan

Are you using TurboTax CD/Download or TurboTax Online?

Tarik1Author

I am using Turbotax online. Thank you

TurboTaxSusan

When you withdraw from your RRSP (before retirement), it doesn't reduce the contributions that you make during the year or in previous years. It reduces your lifetime contribution room. If you take out $5000 from your TFSA, then you can contribute that $5000 back the next year, so your lifetime contribution room will end up the same. But if you take out $5000 from your RRSP, then you will never be able to put that money back in.