You do not want to simply carry it forward as a regular contribution, as that triggers the "Excess Contribution" warning and potential 1% monthly penalties if it exceeds your limit + $2,000.
Instead, you need to tell TurboTax that this is a Designated Transfer under 60(l).
Enter the RRSP receipt in the "First 60 days of 2026" section.
Look for a checkbox or field associated with that specific receipt that says "Amount is a designated transfer" or "Transfer under 60(l)".
When marked as a 60(l) transfer, TurboTax should move the amount to Line 24640 (or similar) on Schedule 7. This tells the CRA: "This money isn't using my normal RRSP room; it's a direct move from another plan." This should clear the "Excess Contribution" warning.
When you receive your T4RIF in early 2027:
You will report the Income from the T4RIF (Box 16/24).
Because you already "reported" the contribution as a transfer on your 2025 return, the CRA will have it on file as an "Unused RRSP amount available to deduct."
You will then finally claim the deduction on your 2026 return to cancel out the T4RIF income.
I will definitely suggest calling before submitting your return to the CRA (1-800-959-8281) to confirm they won't be penalized for an "over-contribution" while waiting for the matching T4RIF next year.
