I have a T4RIF issued to the surviving spouse for over $90,000 in box 16 and $80,000 in box 22. I also have an RRSP Contribution Receipt to the surviving spouse for $80,000 with a note “Transfer in 60 L”
On the T4RIF there is nothing in Box 24, how do I record this in tax cycle so the client gets the offsetting transfer credit?
I agree with Joe, that the RRSP Contribution slip is the matching receipt to use, claiming the RRSP as a transfer on Box 240 of Schedule 7. However, this is not the case if your client is over the age of 72.
I have situation I’m dealing with from a transaction in 2018. In my case, on the death of the 81 yr old spouse, my 78 yr old client received the T4RIF showing the Box 16 income and corresponding Box 24 transfer for $124K+, but also received an RRSP contribution slip under Transfer in 60 L for the matching $124K+ amount. RRIF transfers are claimed on Line 232 (Other deductions), whereas RRSP transfers (Line 240 of Schedule 7) are claimed on Line 208. We claimed the Line 232 deduction hoping that CRA would not consider the RRSP as unclaimed. Since we had the RRSP contribution slip, we also had to claim the contribution, which then showed as a carry-forward because we couldn’t claim it. CRA did a post assessment review in which we sent them a copy of the RRSP contribution slip, and they approved the Line 232 deduction. The auditor failed to recognize that the RRSP contribution would result in a carryforward to 2019.
Going forward into 2019’s tax return, I contacted CRA to discuss this issue. Three agents later plus time on hold where that 3rd agent discussed this with other agents, I was advised to have the client contact the bank to cancel the RRSP slip as it should never have been issued for someone over 72 years of age, as per RC4178. The bank should have simply provided a receipt showing the transfer (my client doesn’t have records of any other receipt for the transfer). I was informed that I couldn’t simply adjust my client 2018 return to remove the RRSP contribution since CRA now has a copy of this slip showing the unclaimed contribution. Nor could I adjust the return to change the deduction from Line 232 to Line 208 because the CRA post-assessment review had already approved the claim under Line 232.
If the bank refuses to cancel the slip, the CRA agent advised that we write a letter to CRA explaining the situation, showing that the amounts on Box 24 of the T4RIF and the RRSP are identical, and ask they cancel the RRSP contribution as being issued in error.
I have since drafted a letter to the bank to make it easier for my client to explain the situation. Hopefully the bank will be compliant and recognize the error.
My client just called me with what sounds like a similar situation. My 85 y.o. Client lost his wife and he was the sole beneficiary of her RIFs. He received 2 T4RIF for the amounts of the transfers. These amounts appear in Box 16. There are slightly lesser amounts in Box 24 excess amount. No other slips have been received to date. I’m thinking the bank made a mistake. Any ideas?
That sounds correct. The amount in box 16 would be reported as pension income. On the T4RIF in Taxcycle, you check off that it is received due to death of spouse. The amount in box 24 will be claimed as a deduction from net income and represents the transfer of RRIF under 60(L). The difference between 16 and 24 likely equals his regular RRIF payment.