Screwed up with RRSP. Help

Alright guys, i need some help. I'm relatively new to canada. I arrived in October of last year and started working in february of this year. i got a bit overzealous and made contributions to my rrsp. I learned that i shouldn't have because i have no contribution room and i'm trying to work my way out of this mess.

My employer has a dpsp (deferred profit sharing plan) and an rrsp.

I spoke to a cra rep and was told that there's a 1% penalty/month on the money that's in the rrsp. if i wanted 100% of the money in the account, i would have to file a t3012. Apparently it takes about 6-8 weeks to process and It seems like i would still have to pay taxes on my withdrawal when i file for tax returns next year and being so close to the year, it seems like the logical conclusion would be to withdraw the money now and not have to continue paying 1% until i have the money withdrawn

i'm not sure if i am able to withdraw the dpsp as i think it's employer funded. I reached out to Great West Life and the person i talked to said that she was going to refer me to a specialist since she's unable to process a withdrawal from the dpsp

For the rrsp, it's broken into 2 parts and i was able to process a withdrawal of one part but i apparently need to talk to a specialist to withdraw the remainder.

I'm not sure if i completely understood the process correctly and would like some thoughts and opinions on what i'm trying to achieve here. Also, am i able to withdraw the whole amount for the dpsp? Is there a way to get a waiver for the 1% penalty? Last, is there an early withdrawal fee that no one is telling me about?

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Thanks,

Posted Dec 5, 2019, 10:16 PM UTC

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