Re: When a designated transfer takes places in the...
Returning Member

Seniors and students

I am confused by this response.  I have a similar situation where I received a lump sum amount from my employer and was given to be Jan 2020.  Some amount of that was eligible as per CRA guidelines:

 

The amount that is eligible for transfer under paragraph 60(j.1) of the Income Tax Act (the Act) is limited to:

  • $2,000 for each year or part of a year before 1996 that the employee or former employee worked for you (or a person related to you)

So let's assume it was $10,000.  My Bank then took that money and put it in my RRSP Account pursuant to 60(j).  I received a RRSP contribution slip for the $10,000 as transferred to my RRSP in the first 60 days of 2020.  Now my contribution room for 2019 tax year is say $6,000.  TurboTax is automatically taking $4,000 (the excess) and transferring it to be used for 2020 tax year.  

 

Why would my employer issue a T4RSP for 2020 tax year?  I don't think they would.  I called CRA and they told I want to see the $10,000 on line 14 of Schedule 7.  In order for that to happen I need to specify in TurboTax on the RRSP panel that the $10,000 is a DESIGNATED TRANSFER.  All is fine till I go NETFILE and then TurboTax flags it as an error as my contribution is more than eligible.  

 

What am I doing wrong?

This widget could not be displayed.