RRSP contributions pursuant to subsection 60(l)

[GC64]

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?

[TurboTax_Susan]

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? 

[GC64]

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.

[TurboTaxAniqua]

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.