My wife left her current position effective Jan. 31/2021 and subsequently received a retiring allowance, composed of both an "eligible" and "non-eligible" amount. Both of these amounts were directly transferred into an RRSP, with her having plenty of room in her RRSP deduction limits for the "non-eligible" amount. I'm having trouble understanding how to report/claim this because, due to the date of her departure from the position, she received RRSP contribution receipts for both amounts. However, the retiring allowance will not show up as income until the T4 is issued for 2021. I understand that a designated transfer must be reported in the same tax year as the "eligible" retiring allowance is received (2021), and is therefore reported as a contribution on 2020 tax return, but is not deducted and carried forward. How is the "non-eligible" portion of the allowance handled? Is the contribution receipt for this also held until next years taxes when the retiring allowance will show up as income?
