I got a RRSP upon retirement from her employer.this shows up on box 67 on her T4 .She took 5000 out which I recorded as RRSP income. .Do I report the cashed in RRSP?

 

Seniors and students

You should have three separate tax slips for this transaction and need to report them as follows:

  • The amount in Box 67 of a T4 (Non-Eligible Retiring Allowance) needs to be reported as income even if you didn't purchase an RRSP. 
  • If an RRSP was purchased, that is a totally separate tax slip and needs to be entered on the tax return of who "contributed" to it. (If this was a "spousal RRSP", it will say Contributor and Annuitant and gets reported by the Contributor.)
  • If an RRSP was then withdrawn, a T4RSP slip showing the amount of the withdrawal and any income tax withheld on it will be issued. (If this was a "spousal RRSP, the slip is issued in the annuitant's name and special rules apply if it was withdrawn within 3 years of contributing).

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