Transfer of an RRSP after death of spouse

SD2019 · ‎April 11, 2022

Good afternoon,

I would greatly appreciate anyone's assistance as the client is questioning my calculations.

The spouse passed away and there was a transfer of RRSP's for $404,123.21 and a T4RSP slip issued for box 18 (refund of premiums) for only $169,897.06 and another for Box 22 withdrawal of RRSP's for $40,000 less $12,000 tax deducted. When I complete the RRSP transfer for the amount of the refund $169,897.06, it leaves a significant balance of taxes owing...to avoid taxes owing on this transfers should the T4RSP box 18 not match the RRSP contribution slip transfer of $404,123.21.

sann12 · ‎April 12, 2022

Yes, I had to investigate the same type of transfer of a RRIF, rolled over from the deceased to her husband.

The issuer who received the transferred funds will issue a receipt to the qualified beneficiary. This receipt is used to claim a deduction by the beneficiary on their return. Check Revenue Canada instructions in their Tax Guide, it is very clear on how it is to be recorded on the recipients return. There are a few scenarios for Registered Funds.