New IRS RRSP Form 8891 available @ IRS.gov - Post Q's here

nelsona · Post by **nelsona** » Fri Mar 24, 2006 3:43 pm

This has been answered before: ALWAYS use beneficiary

Reba · Post by **Reba** » Sat Mar 25, 2006 1:38 pm

I didn't see it anywhere. Thanks!

bcbeagle · Post by **bcbeagle** » Mon Apr 10, 2006 8:34 pm

Hello all,

I could use some advice on filling out form 8891 for 2005.

My husband and I relocated to the US in Jan 2004 on TN visas. When filing our federal returns for 2004, we included an 8891 for each RRSP account we left behind in Canada.

One of my husband's accounts is a self-directed RRSP. The broker that manages it changed firms in 2005, and we transferred the self-directed RRSP to that firm in order that the same broker could continue to manage it.

Consequently, the plan custodian and account number from last year's 8891 are no longer correct. Any ideas how to deal with this?

Thanks in advance,
Karen

nelsona · Post by **nelsona** » Tue Apr 11, 2006 7:10 am

Yeah, change the information at the top of 8891. You do realiize that you have to submit a new 8891 every year.

Jaspal · Post by **Jaspal** » Tue Apr 11, 2006 1:13 pm

My wife has withdrawn in 2005 some $5K from her spousal RRSP, with 25% tax deducted at source. She is on H4 in the US, with me being on H1. How does she get the "217" form, to file her NR return and get the tax back? Thanks.

nelsona · Post by **nelsona** » Tue Apr 11, 2006 1:16 pm

The CRA website. look for 217

Jaspal · Post by **Jaspal** » Tue Apr 11, 2006 4:00 pm

Thanks Nelson, I just looked at the instructions for 217. It says use standard T1 form. Question is, when my wife files her 217, with only income being from RRSP redemption, does she have to include my name, SIN and (US) income in the form, as the form requires.

nelsona · Post by **nelsona** » Tue Apr 11, 2006 10:38 pm

I'm quite sure it says to use the standard T1 form for NON-RESIDENTS.

She does have to indicate your SIN, but your income should be zero, but she can't claim any sposal dedcution/credits.

guy · Post by **guy** » Wed Apr 12, 2006 12:53 pm

I have two RRSPs that I didn't take any money out of or contribute to in 2005. What is meant by distributions and taxable distributions? are distributions the amounts you took out or the total revenue it generated?

also I received at T3 with $2 capital gains and nothing else on it. I guess this means it's for a non-registered plan. Where do I report this on 1040?

nelsona · Post by **nelsona** » Wed Apr 12, 2006 2:22 pm

Disrtributions are moneys taken OUT of your RRSPs.

Money that is earned within the RRSP, is called..... uUndistributed Earnings, which one only repots if they are NOT electing to defer income.

nelsona · Post by **nelsona** » Wed Apr 12, 2006 2:25 pm

was this earned before arriving in US? (it should be, because otherwise you should have advised your broker that youre non-resident, and you would not have gotten a T3, you would have gotten an NR form). it should go on your Cdn return and on your 1040 on schedule D.

if it was earned after becoming US resident, then it should go only on your US return.

guy · Post by **guy** » Wed Apr 12, 2006 2:42 pm

thanks Nelson, that much simplifies the 8891's.

as for the T3. I only received the T3 but I have no statement from the bank as to the actual fund. I'm trying to get one. So I don't have all the info for schedule D. grrrr, it's only $2. Must be from my old trust account

shsamardar · Post by **shsamardar** » Sun Oct 01, 2006 10:18 pm

Hi

in this form, 8891 , there are two questions:

Distributions received from the plan during the year. Enter here and include on Form 1040,
line 16a
Taxable distributions received from the plan during the year. Enter here and include on
Form 1040, line 16b

If mutual fund company pays divident and then it invests the divident in RRSP automaically wih buying extra funds WITHIN RRSP, do we have to enter that divident on line 16a form 1048 or we wil enter 0 meaning no distribution?

if we enter the number in line 16a of 1040 form, technically we are paying tax on that , as part of income for that year, therefore we arw not derfering anything.

can you please help?

nelsona · Post by **nelsona** » Mon Oct 02, 2006 8:35 am

"Distributions" in this context maeans money taken OUT of your RRSP, not reinvested dividends.

If you are using the preaty provision to defer yearly taxation on your RRSP's internal income, you would have nothing to report on these dividends, they would become part of your taxable distributions only when you begin withdrawing funds from the RRSP.

shsamardar · Post by **shsamardar** » Mon Oct 02, 2006 11:47 am

Thank you for your response

How about If I transfer whole RRSP from one bank to another RRSP in another bank, without making any money out?

Thanks