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kdube271
New Member

T4A and RRSP due to the transfer of a RRSP after the death of my spouse.

I am entering a T4A and RRSP due to the transfer of a RRSP after the death of my spouse. The slips are supposed to cancel each other but are not when I enter them. It is a transfer under 60(L) of the Income Tax Act. When I enter the slips it is deducting from my RRSP limit which it shouldn't, as well as giving me a tax break for the contribution, which it shouldn't. I have clicked the transfer box, too, and it doesn't seem to be making any difference. How do you enter it so these slips cancel each other out?

2 Replies

T4A and RRSP due to the transfer of a RRSP after the death of my spouse.

@kdube271 Unless the surviving spouse is designated as the beneficiary on the RRSP contract then the deceased spouse has been deemed to have received the fair market value of the tax deferred assets held within the RRSP.  Income is also reported after the date of death to the estate or the beneficiary depending on the particulars. The T4RSP may be reporting that amount.  You can confirm the nature of the reporting with the financial institution issuing the income slip.  A surviving spouse may defer the income inclusion by transferring the amount to their RRSP as a refund of premium, using form T2019.  There is income tax reporting on the T1 General for both the decedent and the beneficiary to effect that claim.

 

For your reference: RC4177 Death of an RRSP Annuitant URL: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4177.html

 

kdube27
Returning Member

T4A and RRSP due to the transfer of a RRSP after the death of my spouse.

Yes, I have the correct slips and have entered the amounts in Turbo Tax, but they are not transferring correctly on the program. They should cancel each other out as a transfer, but do not. 
Is Turbo Tax capable of doing this type of transfer under the 60(L) transfer?