Transfers to RRSP

dlarryhancock · ‎April 03, 2022

I have a client who has in past greatly overcontributed to his RRSP. During 2021 we completed the T1-OVP forms and the taxpayer withdrew $50,000 from his RRSP. This withdrawal has properly been reported to him on a T4RSP.

This income amount needs to be offset by deducting the previously undeducted/overcontributed RRSP contributions.

To start this I have gone to the input form "Transfers to RRSP" and entered $50,000 on the first line "RRSP refunds of premiums.....". This is the only amount entered on the schedule and so the total at the bottom is $50,000

However whne I do to the RRSP/PRPP page in the section "RRSP/PRPP summary" only $28,515 carries forward to the second line, "Eligible income transferred to your RRSP/PRPP".

Testing this, I find that if I enter any number on the first schedule up to $28,515, then that amount carries forward. But if I enter an amount greater than $28,515, only $28,515 carries forward

Is there a CRA reason that the amount is capped at $28,515? Or, what is this number dependent on?

Thank you

Larry Hancock

janisbossenberry · ‎April 03, 2022

You do not enter the amount as a refund of premiums or as a transfer. Instead, complete T746, where you calculate your deduction for a refund of unused RRSP contributions. You should end up with the following entries: T4RSP box 20 amount of the withdrawal, RRSP contribution on the RRSP slip, amounts(s) in Box 2 on the T746 (where you enter the amounts of the overcontributions from each year). If correctly entered, Box 13 on the T746 will populate with the $50,000 deduction and that full amount will go to line 23200 on the T1.

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janisbossenberry · ‎April 03, 2022

You do not enter the amount as a refund of premiums or as a transfer. Instead, complete T746, where you calculate your deduction for a refund of unused RRSP contributions. You should end up with the following entries: T4RSP box 20 amount of the withdrawal, RRSP contribution on the RRSP slip, amounts(s) in Box 2 on the T746 (where you enter the amounts of the overcontributions from each year). If correctly entered, Box 13 on the T746 will populate with the $50,000 deduction and that full amount will go to line 23200 on the T1.

dlarryhancock · ‎April 03, 2022

Thanks

I have done this in the past but very infrequently. I knew there was a form that I should be filling out, and the T746 is what I needed.

Larry Hancock

BHF2 · ‎April 19, 2022

It says you need a separate form T746 for each year there were contributions made that are now refunds - Profile won't let me create a second form T746 - how do I overcome this???

janisbossenberry · ‎April 20, 2022

Good question. I do not see any way to add additional T746's in Profile. I used to use TaxPrep, and it was a more complex program. What I would do is, prepare multiple T746's using PDFs of the form from CRA's website. I would then suggest leaving the year blank at the top of the form in Profile (cell 1), and entering the totals for line 2 on the Profile form, ensuring that the amount on line 13 ends up being the total you are entitled to deduct. When I do this in my dummy return, it does not seem to complain or give me any diagnostic about missing the year. I think that the e-filed information must just be the total from line 13. If CRA asks for support, provide the separate form T746's you prepared.