T4 Box 67 transfer to RRSP

[Al S]

I'm having a problem with accessing Schedule 7 when having an amount of retirement income from a T4 on box 67.

CRA requires Schedule 7 to be completed when using Box 66 or 67. If I use box 66 instead, Schedule 7 becomes available. If I use Box 67 (from the T4) Schedule 7 is not available.

I would be OK if Schedule 7 would come up automatically or if there is a way to invoke it manually as an override. What can I do?

[TheTaxSmith]

Hello Al S.

Did you make any contributions to an RRSP?

Box 67 is a non eligible retiring allowance, while Box 66 is an eligible retiring allowance.

An eligible retiring allowance can be transferred to an RRSP in whole or in part and you do not need to have any RRSP eligible room to do that. Those transfers don’t affect your RRSP eligibility.

The Box 67 non eligible retiring allowance however can not be transferred to an RRSP if you do not have sufficient eligibility.

Schedule 7 will pop up when you report Box 66 amounts if you transfer amounts into an RRSP from an eligible retiring allowance.

[dejosh]

I'm having the exact same issue with Box 67 nowhere to be found. Please help.

[TheTaxSmith]

Hi dejosh.

Did you add a T4? If so in the T4 data entry scroll down and look for Non eligible retiring allowances and enter the amount in Box 67.

[dejosh]

Yes, I found it - thank you. My problem now is the amount from Box 67 is showing as Other Income on Line 130 and therefore I’m being taxed an insane amount. This is for the 2017 tax year.

I did enter the RRSP amount in 2016 because I received it in the first 60 days of 2017. I didn't use any amount and carried it forward to 2017.

How/where do I enter so Box 67 isn’t recognized as income and I can carry it forward as needed?

 

[TheTaxSmith]

Hi dejosh. You have to complete the RRSP data entry for unused, eligible, and contributions. Once you do that you will still see the income but you should now have a deduction. I have assumed you can find the data entry page for the RRSP. If not just holler.

[dejosh]

Good Morning,

Yes, I entered my RRSP data (Contributions to an RRSP or PRPP/VRSP) but at the top of that page it says: Do NOT enter transfers to your RRSP or PRPP/VRSP here. For more information on transfers, click here.

When I click on the link, this is what it says:

• T4 and employment income > T4 > Portion of box 66 transferred to a RRSP

If you entered a transfer to your RRSP from a T-slip, do NOT also enter the amount in RRSP contributions, limits. Otherwise the amount will be doubled up.

The program isn't giving an option to transfer amounts from Box 67. It's only allowing transfers from Box 66. (T4 - Statement of Remuneration Paid)

[TheTaxSmith]

Hi dejosh. If you received a non eligible retiring allowance and its recorded as a Box 67 amount you can't record a transfer to an RSSP. You have to enter contributions in the data area for RRSP information. Box 67 amounts contribute to your income but in order to reduce the income you need RRSP eligibility plus RRSP contributions. If you have 2016 unused RRSPs as per your 2016 Notice of assessment make sure they are entered as unused in the data area along with any current 2017 contributions.

[norm646]

How do you record an eligible retirement allowance on on u-file program which doesn't effect your RRSP limit?   

[norm646]

I entered the eligible retirement allowance of $12000  in line 66 but the program still says in RRSP that I over contributed by 12,000.  Is that a glitch?   

 

[Nawal]

Hi @norm646, Your retirement allowance will be recorded on line 13000 of the federal return and for residents of Quebec on line 154 with code 03 will be entered on line 153. The portion of the allowance transferred will be carried over to line 24640 of Schedule 7 of the federal return and for residents of Quebec on line 250 with code 04 indicating a transfer.

NOTE: The program may generate a "Warning", informing you that your RRSP contribution exceeds your deduction limit by more than $2,000. Please do not take this into account.

[norm646]

I entered the eligible retirement allowance of $12000  in line 66 but the program still says in RRSP that I over contributed by 12,000.  Is that a glitch?   

Thanks Nawal!!    I thought it looked like a way the program handled it.  

[RMK]

Hi I rec’d a retiring allowance box 66 $16,000 and box 67 $31,447 both amounts were forwarded to bank by company for rrsp purchase of $47,447 in July, 2021

I entered both amounts under the eligible and non eligible amounts.

Under Contributions to RRSP it states not to enter transfers to your RRSP which it mentions if you enter portion of box 66 amount would be doubled up.

How do I report the transfer of the $31,447 in box 67under the Contributions to RRSP?  I have the contribution room of $45,645.

RK