T4RIF annuity transfer

[mblmccann]

I transferred an RRSP to a annuity and received a T4 RIF from the carrier. I also received a "Official Income Receipt" with the box checked "for transfer to an Annuity" The Receipt has no "T" form statement on it and I'm not sure how to enter it to offset the income of the T4RIF. I'm not sure how to report it on my return.

[TurboTaxAllen · Accepted solution]

When you transfer funds within an RRSP to a Registered Retirement Income Fund ("RRIF") the nature of the plan changes from a savings plan to an income fund, designed to pay out a retirement income.  RRIFs have a minimum amount that is required to be withdrawn periodically, at a minimum annually.  More funds can be withdrawn, know as excess amounts.  The minimum amount will have no withholding tax applied, whereas the excess amount will have withholding taxes applied.  They are both considered income in the year they are received.  The transfer of the RRSP funds to a RRIF plan is a direct transfer that will have no income reported nor is a tax deduction afforded.  The T4RIF will report both the minimum payment as well as the excess amount, and any taxes withheld.

[mblmccann]

Thank you for your reply. Much appreciated. Do I have to enter the T4RIF along with the Receipt or do I just keep it on file? Would it be entered for example onto Line 208 or line 232?

[TurboTaxAllen]

For clarity, was your RRSP an unmatured RRSP that transferred it's value to a RRIF or a Matured RRSP that acquired an annuity as per the plan agreement.

[Gerry123]

All of the above responses are on the right track but still fall short of solving my problem.

Basically, I had a RLIF and did a 50% unlocking into a new RRIF. I have 2 tax slips, a T4RIF and another titled "TRANSFER UNDER PARAGRAPH 60(L)(V)".

I used the TurboTax download feature for tax slips from the CRA. The info was automatically inserted into my return. Easy. The tax return looked good and I submitted and expected a refund. However, something is wrong with where TurboTax placed the information and I am taxed now on income of the entire RRIF.

I have been suggested to move the RRIF amount, from line 115 which is where TurboTax put it, to line 130. I don't know if that is correct. I need help! Please advise.

Next, TurboTax placed the amount shown on the slip for the "transfer under paragraph 60(L)(V)" in line 208. Is this correct?

[TurboTaxBrenda1]

Can you please contact us on Facebook or Twitter private message so that we can assist you with this. 

[Gerry123]

I am not sure what you mean by "unmatured". Basically, I have my retirement pension locked up in a LIRA, from which I get a monthly income. As of last year,  I now have the option to "unlock" 50% of that Locked In Retirement Account. I have done that and transfered the amount into a Registered Retirement Income Fund (RRIF). I have 2 slips from my financial institution. One is a T4RIF and the other is titled "Transfer Under Paragraph 60(L)(V)".This is an RSP transfer that does not impact my Available RRSP Contribution Room. The return that Turbo Tax prepared looked good with a refund. 

I submitted the return prepared by TurboTax and the entire amount of the new RRIF was treated as an RRSP contribution (in excess) and I am taxed on the entire amount.

Basically, I used the TTax Tslip download feature and trusted that all the numbers would fall into the correct line. Apparently, there is a problem with that. What did I do wrong?

TurboTaxBrenda1 wants me to contact you on Facebook private message. I tried clicking on the "Facebook" button but got a "This Site can'tbe reached". How do I PM you if you are not on my contact list?

[TurboTaxBrenda1]

@Gerry123 - If you still need assistance, please click here - and you will be able to click on the private message on the top right and send us a message.