Transfers to RRSP

Forum|Forum|4 years ago
April 3, 2022
1 reply
9 views

I have a client who has in past greatly overcontributed to his RRSP. During 2021 we completed the T1-OVP forms and the taxpayer withdrew $50,000 from his RRSP. This withdrawal has properly been reported to him on a T4RSP.

This income amount needs to be offset by deducting the previously undeducted/overcontributed RRSP contributions.

To start this I have gone to the input form "Transfers to RRSP" and entered $50,000 on the first line "RRSP refunds of premiums.....". This is the only amount entered on the schedule and so the total at the bottom is $50,000

However whne I do to the RRSP/PRPP page in the section "RRSP/PRPP summary" only $28,515 carries forward to the second line, "Eligible income transferred to your RRSP/PRPP".

Testing this, I find that if I enter any number on the first schedule up to $28,515, then that amount carries forward. But if I enter an amount greater than $28,515, only $28,515 carries forward

Is there a CRA reason that the amount is capped at $28,515? Or, what is this number dependent on?

Thank you

Larry Hancock

ProFile (Canada)

This topic has been closed for replies.

Best answer by janisbossenberry

You do not enter the amount as a refund of premiums or as a transfer. Instead, complete T746, where you calculate your deduction for a refund of unused RRSP contributions. You should end up with the following entries: T4RSP box 20 amount of the withdrawal, RRSP contribution on the RRSP slip, amounts(s) in Box 2 on the T746 (where you enter the amounts of the overcontributions from each year). If correctly entered, Box 13 on the T746 will populate with the $50,000 deduction and that full amount will go to line 23200 on the T1.

J

janisbossenberryAnswer

Level 7

You do not enter the amount as a refund of premiums or as a transfer. Instead, complete T746, where you calculate your deduction for a refund of unused RRSP contributions. You should end up with the following entries: T4RSP box 20 amount of the withdrawal, RRSP contribution on the RRSP slip, amounts(s) in Box 2 on the T746 (where you enter the amounts of the overcontributions from each year). If correctly entered, Box 13 on the T746 will populate with the $50,000 deduction and that full amount will go to line 23200 on the T1.

D

dlarryhancock1Author

Level 5

Thanks

I have done this in the past but very infrequently. I knew there was a form that I should be filling out, and the T746 is what I needed.

Larry Hancock

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