# Spousal RRSP contributions made in error



## MoneyGal (Apr 24, 2009)

So someone sent me a PM asking about whether a spousal RRSP contribution made "in error" can be reversed by the financial instituiton, quoting one of my posts from the past -- but they don't have PMs enabled (whatever that means), so I can't respond to their PM directly, hence this post. 

I do know that if an RRSP contribution (of any kind) was made "in error" (quotes are deliberate; the definition of error may not be what you think it is) it can be reversed - because I've had a transaction reversed when I was a licensed financial advisor. 

In order to reverse a transaction, you need to: 1. Act before the trade has settled and 2. Have the full cooperation of the participating financial institution. Once the trade has settled and has been reported to CRA, there's (almost certainly) no backing out of it. Also, "error" means you made a mistaken trade (I meant to trade from this account, not that account); it (usually) does not mean "I didn't understand the tax implications of my transaction."


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## OhGreatGuru (May 24, 2009)

FYI: PM means "Private Messaging", a feature which allows members to send messages to one another privately.

You enable it by selecting "Settings" on the top menu bar; navigate to "My Settings"/"My Account"/"General Settings", and you will find a button under the heading of Private Messaging that allows you to turn it on or off, plus several buttons to select various related options.


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## Cal (Jun 17, 2009)

I did a typo w TDW once and got it corrected before the trade settled. TDW was very co-operative.


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## Four Pillars (Apr 5, 2009)

Not that simple - the institution can definitely cancel the trade after it has settled. There are a number of different factors involved.

Short answer - the mystery person should try to get the trade corrected and see what happens. It may not work, but give it a try.


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## MoneyGal (Apr 24, 2009)

You can cancel the trade after it has settled. I should have written as "your best bet is to act before the trade has settled." Settled trades made in genuine error can be backed out or reversed; the institution will even take it on the chin for the client at its discretion. HOWEVER, I think in the case that was described to me, it was not so much an error, but a misunderstanding of how RRSPs work, only discovered at tax filing time. Much harder to unwind, and the institution is going to be much less likely to cooperate.


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