GC64
New Member

RRSP contributions pursuant to subsection 60(l)

In February of 2026, I converted a LIRA to an LIF, and then I immediately transferred 50% of it to an unlocked RRSP, so I received an RRSP contribution receipt for that 50% amount, pursuant to subsection 60(l). But I have not received a T4RIF to cancel out the RRSP contribution, and from what I understand, I will not receive that T4RIF until 2027 (for the 2026 tax year). So should I wait until next year to report the contribution? Note that I can play with TurboTax to get it to carry forward the full contribution this year (for the 2025 tax year), but I'm not sure what will happen next year when I enter my T4RIF into TurboTax, and also, my 2025 RRSP Worksheet is scary looking because it says that I have excess contributions. It's too bad that TurboTax doesn't seem to handle this scenario correctly, or maybe I'm doing something wrong?

Sunday
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TurboTax_Susan
Moderator
Moderator

Troubleshooting

On the RRSP contribution page, did you enter the transferred amount in the box "Is this RRSP contribution a designated transfer of eligible income amount? 

 

 

 

yesterday
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GC64
New Member

Troubleshooting

Yes, I did try it both ways. WITHOUT a designated transfer, I can carry forward the contribution such that none of the contribution is claimed this year, BUT the RRSP Worksheet is a little scary because it shows an "Excess amount with may be subject to a penalty tax in 2026". And WITH a designated transfer, it seem to claim the full contribution (which is wrong of course), and it won't let me carry any amount forward (at least in Easy Step mode). I think it's supposed to be a designated transfer, but because I did the transfer in the "first 60 days of 2026", I won't get my T4RIF until next year. So at this point, I think I will wait until next year to claim the contribution (as a designated transfer), and then hope that the T4RIF correctly cancels out that contribution. Maybe I'll give CRA a call, and hope that someone answers and can help me handle this scenario to their satisfaction.

yesterday
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