LIRA to LIF conversion & one-time unlocking transfer to RRSP

Forum|Forum|4 years ago
March 17, 2022
1 reply
1 view

Hi.

Can someone confirm the following entries when there is a LIRA to LIF conversion & one-time unlocking transfer to RRSP.

Enter the T4RIF slip as you would regularly.

Enter the RRSP contribution (transfer under 60L) slip amount under an RRSP contribution as well as under a Transfer to RRSP ("RRSP refunds of premiums or RRIF designated benefits" option)

Thank you

ProFile (Canada)

This topic has been closed for replies.

J

janisbossenberry

Level 7

Basically, I agree. However, when entering the T4RIF I would put the amount in Box 16 like normal and also in Box 24 "transferred to RRSP". It then shows up automatically on the RRSPTransfer form as Excess amounts transferred to your RRIF. A refund of premiums on the top line is for RRSP received on the death of an individual.

P

pcilla

Level 2

I wonder if there is a problem with this for tax year 2022.

When entering the T4RIF I put the amount in Box 16 like normal and also in Box 24 "transferred to RRSP". It then shows up automatically on the RRSP Transfer form as Excess amounts from a RRIF directly transferred by the carrier of your RRIF. However, the reduction didn't show up on the T1 on Line 23200 Other deductions. So the entire amount from Box 16 was added to taxable income.

I then tried entering the withdrawal amount in Box 24 under "Transferred to RRIF". The result was that the Transfers to RRSP form was left blank. However, the deduction appeared on LIne 23200 Other deductions.

This makes more sense to me.

Anyone else come across this issue for 2022?

P

Pro4

Level 8

Hi,

If under age 71, transfer to RRSP is possible but you need to enter the amount from the RRSP contribution slip on the RRSP deduction screen. The deduction will be on line 20800

If age is over 71, only transfer to a RRIF is allowed so, the RRSP screens are not used and the deduction goes on line 23200. The 60(L) receipt is needed in case CRA asks about the line 23200. (Sometime financial institutions issue an RRSP receipt for RIF transfers).

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