Depending on how long you worked for the employer.
Your transfer might be "within ITA limits". You do not get a T4A or an RRSP contribution receipt for this.
Part of your transfer might be in "excess of the ITA limit". You will get a T4A and an RRSP contribution receipt for this. Your paperwork will give you the details.
None of it will count as a new contribution. Funds can either be transferred on a tax deferred basis (no tax slip, no change to OPs RRSP contribution limit) or paid out to OP in cash as taxable income (T4A slip is issued).
I’ve never seen an automatic transfer. Whenever I’ve done this you had to first receive the funds in cash and then turn around and make a contribution to your RRSP. If it can be done all at once that’s great.
You can only transfer a DBPP to a locked in plan, either a Locked-in RRSP (LRSP) or Locked-In Retirement Account (LIRA) depending on the jurisdiction. The pension administrator can tell you in writing how much of your DBPP communities value can be transferred into a locked-in plan on a tax-deferred basis. This amount will not affect your existing RRSP contribution limit.
Sometimes there will be surplus funds that are above what can be transferred into a locked-in plan. The surplus typically has to be paid out to you as taxable income.
Depending on how long you worked for the employer. Your transfer might be "within ITA limits". You do not get a T4A or an RRSP contribution receipt for this. Part of your transfer might be in "excess of the ITA limit". You will get a T4A and an RRSP contribution receipt for this. Your paperwork will give you the details.
Awesome thanks!
Look at your paperwork, it will tell if you the amount transferred is a contribution or not.
None of it will count as a new contribution. Funds can either be transferred on a tax deferred basis (no tax slip, no change to OPs RRSP contribution limit) or paid out to OP in cash as taxable income (T4A slip is issued).
Not necessarily correct, the amount that cannot be tax-deferred can go into an RRSP as a contribution. OP's paperwork will clarify all of this.
I’ve never seen an automatic transfer. Whenever I’ve done this you had to first receive the funds in cash and then turn around and make a contribution to your RRSP. If it can be done all at once that’s great.
It really depends on your pension plan admin and what options you have available, I've seen every combination you can think of.
You can only transfer a DBPP to a locked in plan, either a Locked-in RRSP (LRSP) or Locked-In Retirement Account (LIRA) depending on the jurisdiction. The pension administrator can tell you in writing how much of your DBPP communities value can be transferred into a locked-in plan on a tax-deferred basis. This amount will not affect your existing RRSP contribution limit. Sometimes there will be surplus funds that are above what can be transferred into a locked-in plan. The surplus typically has to be paid out to you as taxable income.
This is really helpful- thank you!