LIRA transfer upon death to surviving spouse

robvdv · ‎April 25, 2023

Does anyone have experience entering the transfer of a LIRA to a surviving spouse as the pension partner owner? (This is Alberta context but I believe other provinces have similar rules?) I understand this should occur on a tax-deferred basis. For my particular client, similar to an RRSP, I have a T4RSP showing the refund of premiums. However there is no equivalent of an RRSP contribution slip so currently on the tax return the entire amount is taxable, when it should be tax-deferred. Do I need to somehow manually enter the transfer to a LIRA to offset the income inclusion?

JRBooks1 · ‎April 26, 2023

I would have the surviving spouse and/or the executor go to the institution holding the LIRA and get some form of written statement showing that the specified amount has indeed bee transferred. You'll always get the T4RSP or equivalent quickly, but there does not seem to be a good process for issuing documentation when there is a direct transfer to a spouse or disabled child.

Jo

Mario B · ‎April 26, 2023

I am not sure if this is what you are looking for, but we have this article for T4RSP transfer

https://profile.intuit.ca/support/en-ca/help-article/manage-users/t4rif-t4rsp-transfer-profile-t1-tr...

janisbossenberry · ‎April 26, 2023

On the T4RSP, you enter it in Box 18, Refund of Premiums. Then go to the RRSPTransfer form and enter the same amount on the first line, "RRSP refunds of premiums or RRIF designated benefits". This is supposed to then enter that amount on the Schedule 7, Transfers line 24640. In my dummy file, it did not seem to show up properly in the 24640 box, but that might have been because I don't have a spouse set up in that file. If it does not show up, I would override on the Schedule 7.

ProFile Duncan · ‎May 02, 2023

Hi,

The amount on RRSPTransfer will not show on line 24640 of schedule 7 unless there is a contribution entry on the RRSP deduction screen. In general there should not be a need to override on schedule 7. Hope the return filed for you!