I have a client that has received a lump sum payment in 2020, a portion was a direct transfer and was issued a 60J for the Feb of 2020.
Was the 60J supposed to be reported on the 2019 taxes then used on the 2020 taxes? Or if i is a transfer it needs to match the T4A lump sum.
Thanks for your help in advance
“Assuming the eligible portion is transferred directly to the employee’s RRSP, the employer is not required to withhold any tax at source. An RRSP contribution slip – sometimes referred to as a 60(j. 1) receipt – would then be issued to the employee to claim an offsetting deduction on his or her return .”
Oh, ok. 60J meaning ITA section 60. Thanks @obhorst
@insitetax - Yes, the RRSP contribution must be reported on their 2019 T1. If it wasn’t needed, or wanted, as a deduction that year, it could be carried forward. But, also prudent to check the client’s RRSP deduction limit, to ensure there was no over-contribution (which may then require a T1-OVP). Presumably, between your client and the payor, they should have checked the contribution limit before making the transfer, but best to check.