T3 Trust T4 RSP Box 40 Tax-Paid Amount

T3
1

How do I treat Box 40 on T4 RSP, Tax Paid Amount;

Background: taxpayer died October 2020; executor had issues getting will probated, finally probated September 2025; accounts paid out October 2025.

2025 T4RSP issued; Box 28 is other income and I can calculate it is the difference between the amount of T4RSP issued for 2020, value as of date of death, and the amount paid out to the estate account;

But Box 40 is for an amount that I cannot determine; is this the amount the FI sent directly to CRA for the income earned after the exempt period: 2022, 2023, 2024? and do I do anything with it or it is for information purposes only?

2

Google is your friend…quote from CRA website

Box 40 – Tax-paid amount

This is a tax-paid amount paid to certain beneficiaries from a trusteed RRSP. The legal representative needs this amount to determine the amount to report on the deceased RRSP annuitant’s final tax return.

The tax-paid amount also applies to depositary RRSPs, but do not report it in box 40, since it has to be reported on a T5 slip.

For more information, refer to Tax-paid amount and after-tax amount from an unmatured RRSP.

3

Yes, I did get that info from Google, but it is not clear to me; and this info is for the issuer, not for the recipient or the tax preparer completing the T3 trust for 2025 (me); looking for a tax preparer who has had experience with estate with delay closing of RRSP and income earned after the exempt period; and has used the T4 RSP with both box 28 and box 40 and how they reported them.

4

I received the following info from the estate department of the financial institution; still need guidance as to how to report all of this info on the T3 Estate trust tax return and for what years?

From the FI:

In regards to your inquiry as noted below. We have contacted our Estate department they have provided the following response:

I can say in general that Box 40 will be any portion of the total post-death gain that was earned after the exempt period ended, i.e. after December 31 of the year following death. No money would have actually been remitted to CRA, though FYI.