A question on tax return....

[Moraff]

Before I get flamed... I fully intend to call the CRA help line on Monday to get the official answer.

My company closed last year... one consequence was that I had to flip my company pension into a personal RRSP.

Now that it's time to fill out the old tax return does that money get claimed as an RRSP deduction or just ignored (since it's still my pension, just in my hands instead of the company's)?

Just to be clear, I never got the money in my hands, it went straight from the company's pension holder to my new RRSP.

 

[Justanormalguy]

Shouldn't have to pay anything if it went straight from one plan to another.

I've transferred money from my company pension plan to my personal RRSP a couple of times so I looked into it.

 

[toughb]

Before I get flamed... I fully intend to call the CRA help line on Monday to get the official answer.

My company closed last year... one consequence was that I had to flip my company pension into a personal RRSP.

Now that it's time to fill out the old tax return does that money get claimed as an RRSP deduction or just ignored (since it's still my pension, just in my hands instead of the company's)?

Just to be clear, I never got the money in my hands, it went straight from the company's pension holder to my new RRSP.

***

You will not pay tax till you take the money out. You're cool...

 

[landscaper]

one caution, several years ago a judge ruled that the government was not liable for any mistakes an emplyee makes specifcally Revenue Canada in this case. A friend called and got a ruling in writing later during an audit another rev can wienie said the first one was wrong and ordered a reassesment, the judge ruled that the person signing the return is responsible for it regardless of who gave advice.

Be carefull with the info , all that said it should be a straight forward pencil rush to completion

 

[ang]

You will get a t4A for the transfer, with an excess amount, if it was transferred to your RRSP you will get a contribution receipt to off set it..PM me if you want more info

 

[Anynym]

Presuming the transfer was completed "behind the wall", there should be no issues.

My question would be why a pension would be transferred to an RRSP, and not a LRSP (Locked-in Retirement Savings Plan). An LRSP is much like an RRSP, but the rules are a bit tighter (e.g. your broker should be keeping the investments in a lower risk profile, you can't simply withdraw the money at any time and pay the taxes owing, that sort of thing).

 

[Moraff]

Presuming the transfer was completed "behind the wall", there should be no issues.

My question would be why a pension would be transferred to an RRSP, and not a LRSP (Locked-in Retirement Savings Plan). An LRSP is much like an RRSP, but the rules are a bit tighter (e.g. your broker should be keeping the investments in a lower risk profile, you can't simply withdraw the money at any time and pay the taxes owing, that sort of thing).

Sorry, you are correct... it is a locked in RSP...

I wasn't worried so much about paying tax on it, just wondering if I got to claim it as an RRSP contribution (which would improve my refund right?). I'm pretty sure the answer is no, because that would be something favourable for my taxes <grin>

Thank-you all for your input!