How do I note a QROPS transfer of UK pension funds to an RRSP done in 2016? The transfer was facilitated by a financial advisor who ensured the appropriate process

[Hello21]

The funds were transferred to an approved QROPS product.

[TurbotaxRobert · Accepted solution]

Your QROPS transfer in 2016 would have transferred funds from a UK pension fund to an RRSP in Canada and, as such, would have represented a transfer between tax sheltered pension plans that would not, normally, be subject to tax at the time of the transfer in Canada.  If that is the case, there shouldn't be anything to report in your 2016 Canadian tax return. However, for extra safety, you may want to confirm the above details with the original financial advisor that assisted with the transfer.

[Hello21]

I was told by my financial advisor that the steps are as follows:
 
1.  Include the transfer value as income on line 130
2.  Deduct the transferred amount as you would any RRSP contributions (which ends up being line 208 on the T1)
3.  Claim a transfer amount equal to the transfer value as line 14 on the Schedule 7 (this steps exempts your transfer amount from requiring any RRSP room).

I've done step 1 in Turbo T by writing a description of the other income in the generic other income box. For step 2 I've noted the transfer amount as an RRSP contribution. How do I complete step 3 in Turbo Tax?

[TurbotaxRobert]

I am not sure if the version of TurboTax that you are using would enable you to make the entry in Line 14 on the Schedule 7 directly.  Your particular transfer between tax sheltered funds from UK to Canada is an unusual situation and might require the filing of a paper return with the appropriate supporting documentation to be attached, etc. to ensure that the "roll-over" will be accepted on filing by CRA.  Do you have an RRSP slip from the Canadian institution indicating the transferred amount?  If not, you will also need that.

[Hello21]

I do have the RRSP slip. Should I go through the Turbo T process for our joint tax return then at the end print it for submission by mail along with a completed schedule 7, RRSP slip and note explaining the QROPS transfer? Any more specific advice appreciated.

[TurbotaxRobert]

If it was me, that is what I would do since the initial effort to file a paper return and submit all of the information initially would be better than having to go through an extended adjustment explanation process, etc. later if it turns out that your return is assessed incorrectly.  Subject to what version of TurboTax you are using, you should be able to net file your spouse's return and then print a proper version for paper filing your return.

[Hello21]

Thank you!