Hello,
We cashed out my wife's RRSP to help pay a downpayment on our house.
CRA took their 25% and we got the rest. For round number's let's say we got $10,000.
8891's have been filed since 2008. I did miss last year but plan to submit an amended return (we did not contribute anything to the RRSP in 2010)
The fund sent us 1099's showing the disbursement.
I have searched high and low and I just end up confused.
Do I report the $10,000 on 7a and 7b of Form 8891 for 2011?
Each previous 8891 did not show income, just balance and contributions.
Thank you in advance for your help.
Cashed out RRSP, rec'd 1099, need help
Moderator: Mark T Serbinski CA CPA
To further clarify:
2008 was the first year that an 8891 was filed
The balance at end of year was 8,000 and there were 7,000 in contributions that year.
In 2009 there was 500 in contributions and the ending plan balance was 12,000
In 2010 there were no contributions
in 2011 we cashed it out and got $12,000 minus the 25% taken out by CRA.
Would the taxable amount (box 7b) be $11,000? Basically she only had $1,000 in it when she moved here it looks like.
2008 was the first year that an 8891 was filed
The balance at end of year was 8,000 and there were 7,000 in contributions that year.
In 2009 there was 500 in contributions and the ending plan balance was 12,000
In 2010 there were no contributions
in 2011 we cashed it out and got $12,000 minus the 25% taken out by CRA.
Would the taxable amount (box 7b) be $11,000? Basically she only had $1,000 in it when she moved here it looks like.
Since you have been taking the election, on form 8891, you report 12000 as gross, and deduct the original $1000 PLUS any contributions over the years from this number, for your net. This will automatically go to 16a/b on 1040.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best