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Email this10:50 am
April 6, 2013
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dommm said
A little off topic but I did a transfer from an RRIF to an RRSP. I was under the understanding that transfering between registered accounts would not cause a taxable event but I received a T4RIF that shows an amount in Box 16 (Taxable Amounts). Was I wrong or are they wrong? Thanks
Unfortunately, you were wrong.
According to CRA: RRIF – Transfer of excess amounts and property, there's no event only when the transfer is to another RRIF.
Such a transfer to an RRSP will create RRSP deduction room through line 24640 of Schedule 7. So, one could claim an RRSP deduction (line 23200) to offset the taxable amount of the transfer.
12:50 pm
September 11, 2013
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Norman1, wouldn't the offsetting RRSP deduction be via regular RRSP{ deduction line 20800? That's what line 24640 of Sch 7 suggests to me - ?
8:23 am
April 6, 2013
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My mistake. Yes, the offsetting RRSP deduction would be claimed on line 20800 (RRSP deduction).
The offsettng deduction would be claimed on line 23200 (Other deductions) when the transfer is from a RRIF to an annuity.
According to the form T2030 used for such transfers, a T4RIF slip should be issued by the transferor and a tax receipt should be issued by the receiving financial institution.
8:55 am
November 15, 2018
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So I called TD & was told I would receive a form/letter called 60L that would need to be attached to my income tax return. They told me this would offset the amount listed on the T4RIF. I then asked where on the return this info would go & was told to ask my tax preparer. I went to the CRA website & searched for 60L with no luck.
9:12 am
April 6, 2013
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That's probably the RRSP receipt confirming the direct transfer under Income Tax Act 60(l) to the TD RRSP .
Guide T4040 RRSPs and Other Registered Plans for Retirement has instructions in Chart 9 located in chapter 6:
| Type of property | … | Instructions | Form |
| Excess amount from a RRIF under 60(l)(v) | … |
■ The excess amount is shown in boxes 16 and 24 of your T4RIF slip unless it is directly transferred to another RRIF for you. Report the total amount shown in box 16 on your income tax and benefit return.
■ For details on how to report this income, go to canada.ca/fed-tax-information and select line 11500. ■ If the excess amount is directly transferred to your RRSP, claim a deduction for the amount you transfer on line 20800 of your income tax and benefit return. If the excess amount is directly transferred to an issuer to buy an eligible annuity, claim a deduction for the amount you transfer on line 23200. ■ The excess amount directly transferred to another of your RRIFs should not be reported on your T4RIF slip. Do not report the amount transferred as income on your income tax and benefit return, and do not claim any deduction for the amount transferred. |
T2030 |
11:22 am
November 15, 2018
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Norman1 said
That's probably the RRSP receipt confirming the direct transfer under Income Tax Act 60(l) to the TD RRSP .Guide T4040 RRSPs and Other Registered Plans for Retirement has instructions in Chart 9 located in chapter 6:
Type of property … Instructions Form Excess amount from a RRIF under 60(l)(v) … ■ The excess amount is shown in boxes 16 and 24 of your T4RIF slip unless it is directly transferred to another RRIF for you. Report the total amount shown in box 16 on your income tax and benefit return. ■ For details on how to report this income, go to canada.ca/fed-tax-information and select line 11500.
■ If the excess amount is directly transferred to your RRSP, claim a deduction for the amount you transfer on line 20800 of your income tax and benefit return. If the excess amount is directly transferred to an issuer to buy an eligible annuity, claim a deduction for the amount you transfer on line 23200.
■ The excess amount directly transferred to another of your RRIFs should not be reported on your T4RIF slip. Do not report the amount transferred as income on your income tax and benefit return, and do not claim any deduction for the amount transferred.
T2030
That was a BIG help Norman1, thanks for digging that up!!
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