RRSP Withdrawal - Calculating 16b

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barb940
Posts: 2
Joined: Thu Aug 11, 2005 11:41 am

RRSP Withdrawal - Calculating 16b

Post by barb940 »

I did an RRSP withdrawal in 2004 and I'm wondering if I should be submitting an explanation of how I calculated the taxable amount on my 1040. (line 16b)

Do I have to submit a substitute 1099R because I only have the T4RSP?

Thanks!
nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You do not submit an explanation.

You submit Form 8891, indicating the gross and taxable ammount on the lines 7a and 7b, and enter these on 16a and 16b. There is a thread covering 8891 on this site.

You do not submit any 1099, as (a) this was not a US account and (b) no US tax was withheld.

By the way, you should NOT have a T4 RSP either, since you were (presumably) a non-resident of canada when you made the withdrawl, no?
You should have gotten an NR receipt.

I suspect that if you have a T4, you did not have the correct 25% flat NR tax withheld, so you had better get this straightened out with CRA annd with your RRSP manager. I suspect that you have not informed your RRSP that you are living in US, which is also a no-no.

You do not have to submit the T4 to IRS either. IRS is not as receipt-mad as CRA is. Keep all these for your records.

<i>nelsona non grata... and non pro</i>
barb940
Posts: 2
Joined: Thu Aug 11, 2005 11:41 am

Post by barb940 »

You're right Nelson. MRS is my trustee and they did not withhold the right amount. So I did send the difference into Revenue Canada with an explanation letter.

MRS does know that I am in the US. They send me my statements in the US. I'll have to follow up with them. And I have been duly reporting the existence of my RRSP to the IRS each year since we arrived!




nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Be sure to use the correct fina lCdn tax in your foreign tax credit or tax deduction calculation on 1116 or 1040.

<i>nelsona non grata... and non pro</i>
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