Hi,
Before I get into the details, here is some background on the scenario (the numbers are hypothetical, just to make the example easier to follow):
- I left my prior job
- The amount in my RPP from my prior job was unlocked, so I decided to transfer that amount directly to my RRSP ($5K). The transfer of funds was completed and in the RRSP account in the first 60 days of 2020.
- I also made a regular contribution in first 60 days of 2020 ($7K).
In the RRSP contribution section of the filing:
- One section asks for "Contributions made between January 1 and March 2 (inclusive)." The total $12K is added here (both the regular contribution and the addition to the account due to the unlocked RPP transfer).
- A few questions below that, the user is asked "Is this RRSP contribution a designated transfer of eligible income amount? If so, enter the amount that is a designated transfer." The $5K transferred from the RPP is added in this field.
Then at the end of the process, it provides an error message which states:
- "The amount you designated for transfer to an RRSP cannot be greater than the eligible income reported for transfer."
I believe I am answering the questions correctly, so why is this error occurring? Rather than unlocking the RPP and receiving a taxed cash payment, it was transferred directly to the RRSP. This follows the definition of a designated transfer, and from what I understand a transfer between a RPP to RRSP should be noted in the filing, so I am not sure why this error message is appearing.
Please let me know if I am misinterpreting anything. Any guidance on this issue would be greatly appreciated. Thanks in advance.
