I have a problem that I have not come across before. I have a client (67 years old) who had a RIF until last year. The client did not want to make any more minimum withdrawls, so their financial advisor (a Canadian Bank) transferred the RIF to an RSP. The bank issued a T4RIF for the full (excess) amount ($200,000). If I process this in TaxCycle as an “Amount Transferred to RRSP”, there is no deduction, and $95,000 tax owing. I believe that since this was a “direct transfer” the client should be eligible for a corresponding deduction of the $200K. Does anyone know how to process this in TaxCycle? Many Thanks for the help and advice!!
Mike Hyde (mhyde@outlook.com)
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Taxwave, Many thanks for your reply. I have entered the “excess amount” as a transfer to RSP on the T4RIF Slip - - however, my problem is that TaxCycle does NOT seem to be calculating any RSP deduction… (My client’s return indicates a $93,000 amount of tax owning). Any other suggestions will be very much appreciated!
I presume your client has a $200,000 RRSP contribution slip/from AFR.
RRSP contribution worksheet must have this contribution included
for the deduction allowed as transfer.
Many Thanks, Taxwave. I understand now. The Bank did not issue an RSP Contribution slip (or at least, I do not have it yet). I will contact the investment advisor and obtain the contribution slip. Thank you for your help with this!!
Mike Hyde, Ottawa