T4RIF and RRSP contribution

[Misha]

I retired in 2022. I had a LIRA, which got converted into a LIF. Half of the funds were then moved from the LIF into an RRSP. I got a T4RIF slip showing the withdrawn funds as taxable income, and an RRSP contribution slip for the same amount. My financial management company tells me that is a standard procedure, and the two slips should cancel each other thus not generating any tax. However,  while Ufile added the T4RIF amount to  my other income (thus creating a significant additional tax), the amount on the RRSP slip is shown as overcontribution; what do I need to do to have it applied against the T4RIF amount?

[JimBob]

I have the exact same problem.  This is what I tried.

In the T4RIF form I keyed in unlocked amount under the box titled "- portion of Box 16 transferred to a RRSP/PRPP (click the ?)"

After that, the two slips did indeed "cancel" each other.

See the snip below where the unlocked amount is $50,000.00

I would appreciate it if an expert chimed in and confirmed that what I tried is correct.

[sodium]

I have a similar issue. My wife passed away last year. I thought I could withdraw part of her RSP and roll the rest into my RSP. The bank issued a T4RSP for the withdrawal of the full RSP in my wife's name, and an RRSP contribution slip with note about "Pursuant to section 60LV". How do I get Ufile to not count this contribution against my contribution room on my taxes, and not show the contribution as income on my wife's taxes?

Alternatively, if I have erred in my understanding of what is allowed, can someone please say. I was on the phone with CRA last week for almost 6 hours and never got a straight answer or meaningful assistance. Thanks!

[Geo123]

Hello sodium,

If your receipt issued by the financial institution indicates that it is a "Transfer under s. 60LV", please follow the procedure below.

Also, be aware that a "CRI in the tax sense is a locked-in RRSP" and that a "LIF is a RRIF".

1. On the "Left-side menu on the Interview tab", select "T4A and pension income".

2. On the screen to your right, click on the plus sign "+" icon on the right the line "T4RIF - Income from registered income fund (RL-2)".

3. On the new page generated, enter the amount from box 16 of your T4RIF slip and write it on the line "Taxable amounts from a RFIF (RL-2 box B)".

4. In addition, enter the same amount again on the line "- portions of Box 16 transferred to an RRSP/PRPP (click the?)".

This amount will be carried over by the program on line 13000 of the federal return as well as on line 20800.

In addition, federal Schedule 7 will indicate on lines 24500 and 24640 the amount transferred

[sodium]

Thank you Geo123. A couple of clarifications:

I have a T4RSP in my wife's name (not RRIF involved), but there is only a value in box 34, not in 16. The separate contribution slip was issued in my name, not hers. Whose return should I enter these under? Thanks again.

[sodium]

For others interested in this thread, an accountant has clarified for me that the bank's tax forms were incorrect. A T4RSP should have been issued in my name for the amount being transferred, and one in my wife's name for the amount i cashed out. Waiting for the corrected forms so I cannot share what it will look like when done. Thanks for the suggestions so far.

[Geo123]

Hello sodium,

Thank you.

[TekC]

On 4/20/2023 at 11:40 AM, Geo123 said:

Hello sodium,

If your receipt issued by the financial institution indicates that it is a "Transfer under s. 60LV", please follow the procedure below.

Also, be aware that a "CRI in the tax sense is a locked-in RRSP" and that a "LIF is a RRIF".

1. On the "Left-side menu on the Interview tab", select "T4A and pension income".

2. On the screen to your right, click on the plus sign "+" icon on the right the line "T4RIF - Income from registered income fund (RL-2)".

3. On the new page generated, enter the amount from box 16 of your T4RIF slip and write it on the line "Taxable amounts from a RFIF (RL-2 box B)".

4. In addition, enter the same amount again on the line "- portions of Box 16 transferred to an RRSP/PRPP (click the?)".

This amount will be carried over by the program on line 13000 of the federal return as well as on line 20800.

In addition, federal Schedule 7 will indicate on lines 24500 and 24640 the amount transferred

Hi Geo123,

I have the same problem exactly and did the solution as you stated above; however, I have a doubt as I still have an outstanding RRSP receipt with the same amount which I did not enter into Ufile.  If I do enter this amount as a RRSP contribution into Ufile, what I find is I now look like I've contributed this amount towards my RRSP, it takes up my RRSP room and makes it look like I've over contributed.

So to clarify, you're stating after performing your steps for the T4RIF, ignore the RRSP contribution slip and we're done?

Thanks.

[yuuuky]

Hi, currently filing for my belated father and still here mother's taxes, wondering what you guys ended up doing. I have 2 T4rsp in my moms name and got a rrsp contribution slip with the 60L(V).

Very unsure what to do.

Thanks in advance.

[Geo123]

Hello yuuuky,

Transferring directly from an RRSP to an RRSP or from a RRIF to a RRIF- Transfer under paragraph 60L / 60L(V)

You probably received either a T4RIF or a T4RSP slip for withdrawals you have made and transferred either to an RRSP or a RRIF.
The mention 60L may appear on your receipt to indicate the direct transfer.
To report this direct transfer from one account to another, please follow the steps below:
1. On the "Left side menu on the Interview tab", select the item "Interview setup".
2. On the right-hand side of the screen, go to the "Pension" group, check the box for "Pension income, other income and split pension income (T4A, T4A(OAS), T4A(P), T4A-RCA, T4RSP, T4RIF, T1031)" and click "Next" at the bottom of the page.
3. Return to the "Left side menu on the Interview tab" and select "T4A and pension income"
4. On the screen to your right, choose the line that corresponds to your situation, either "T4RIF - Income from Registered Retirement Income Fund (RL-2)" or "T4RSP - Income from a Registered Retirement Savings Plan (RL-2)".
5. For the line "Box 16 - Taxable amounts from a RRIF (RL-2 box B)" or "Box 16 - Annuity payments from RRSP (RL-2 box B)", enter the amount of the withdrawal.
6. For the line entitled "Portion of Box 16 transferred to a RRSP" or "Portion of Box 16 transferred to a RRIF", enter the amount transferred.
You should ask the payer to transfer the funds directly from one account to the other.
Generally, the amounts you transfer directly into an RRSP do not change your RRSP deduction limit.
The amount transferred directly will be entered on line 24640 of federal Schedule 7.
For more information on this topic, consult the following link:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/transferring.html