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It's been a few years since I've had one of these and when I last did one I believe it was called 60J. Anyway I have a client who has a T4A slip box 27 - non-eligible retiring allowance in the amount of $11,088.00 which was transferred directly into a RRSP. Where do I put the deduction of $11,088.00 as there is no other slip other than the T4A and it does not have it marked that this was a 60J??
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Retiring allowance transfer
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#2
JohnV 
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Posted 25 April 2007 - 12:53 AM
If it is a non eligible retiring allowance, by definition it is NOT eligible for a transfer via 60j....
IF it was eligible, you'd still get an RRSP deduction slip and it would say it was transferred via that section. So if you have no offsetting RRSP deduction slip, it is 100% taxable income .....
IF it was eligible, you'd still get an RRSP deduction slip and it would say it was transferred via that section. So if you have no offsetting RRSP deduction slip, it is 100% taxable income .....
#4 Guest_snowplowguy_*
Posted 25 April 2007 - 01:17 AM
Christine, on Apr 24 2007, 08:33 PM, said:
Where do I put the deduction of $11,088.00 as there is no other slip other than the T4A.
Well....... unless your client can produce the "other slip" you really don't have to worry about putting the deduction anywhere. :)
Seriously though...... you might want to send your client hunting for an RRSP receipt in the amount of........lets say....... $11,088.00.
#5
RL Tax Joe
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Posted 25 April 2007 - 02:45 AM
snowplowguy, on Apr 24 2007, 08:17 PM, said:
Well....... unless your client can produce the "other slip" you really don't have to worry about putting the deduction anywhere. :)
Seriously though...... you might want to send your client hunting for an RRSP receipt in the amount of........lets say....... $11,088.00.
Seriously though...... you might want to send your client hunting for an RRSP receipt in the amount of........lets say....... $11,088.00.
Or just ask if they sent it to an RRSP or sent it to their pocket <_<
#6
BalancedBooks
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Posted 25 April 2007 - 12:28 PM
Another hint that it wasn't transferred to an RRSP is that there should be a box on the T4A showing tax withheld. At least 10% of the ineligible amount should have been withheld.
Direct transfers don't have tax withheld.
Dan
Please note: No negative comments provided. Not worth the effort.
Direct transfers don't have tax withheld.
Dan
Please note: No negative comments provided. Not worth the effort.
#7
RL Tax Joe
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Posted 25 April 2007 - 02:07 PM
BalancedBooks, on Apr 25 2007, 07:28 AM, said:
Please note: No negative comments provided. Not worth the effort.
Thats some pretty good restraint Dan.
Good show man.
#8
Christine
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Posted 26 April 2007 - 05:11 AM
Originally the clients husband told me it was transferred into a RRSP. I spoke with the Mrs and she said she thought it was too. I explained to her that is showing non-eligible. Now she is really confused so she is calling the company that she invested the money with to see what they did with it and why it was not put into a RRSP.
Dan thanks for not posting any negative comments.
Dan thanks for not posting any negative comments.
#9 Guest_snowplowguy_*
Posted 26 April 2007 - 11:32 AM
Christine, on Apr 26 2007, 01:11 AM, said:
I explained to her that is showing non-eligible. Now she is really confused so she is calling the company that she invested the money with to see what they did with it and why it was not put into a RRSP.
Just because the T4A has the retiring allowance in the 'ineligible' box does not mean the money was not invested into the clients RRSP. The ineligible simple means the retiring allowance cannot be transferred to an RRSP without having an affect on the client's RRSP deduction limit. If the client had sufficient RRSP room on their 2005 NoA the 11k could have still been directly contributed to their RRSP.
Re-read BalancedBook's post..... if there has been no tax deducted on the T4A then that in itself may be an indication the retiring allowance was directly invested into an RRSP..... that is assuming the payor followed the tax rules when the money was paid. If the retiring allowance was not directly invested into an RRSP the payor had a statutory obligation to withhold tax.
#10
RL Tax Joe
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Posted 26 April 2007 - 02:10 PM
snowplowguy, on Apr 26 2007, 06:32 AM, said:
If the retiring allowance was not directly invested into an RRSP the payor had a statutory obligation to withhold tax.
True, however some companies are doing them incorrectly and including the tax amount on a T4 slip. Had one where the tax withheld was 3 times more than the income :blink: But then there was nothing on the T4A other than the income.
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