Can I transfer my foreign pension to my RRSP?

Yes, you can. However, whether or not this transfer can be done tax-free will depend on the pension plan and the tax treaty that’s in place between Canada and the pension’s country of origin. Best of all, you might be able to move the entire value of your foreign pension into your RRSP without using up any of your contribution room, as would be the case if you have an IRA and you choose to transfer the entire amount to your RRSP.

 

How do I transfer my foreign income to my RRSP?

Follow these steps in H&R Block’s tax software to transfer your foreign pension income into your RRSP:

  1. On the PREPARE tab, click the OTHER icon. You’ll find yourself here:

    OTHER_EN.jpg

  2. Under the FOREIGN TAX CREDITS heading, select the checkbox labelled, Foreign tax credit (T2209) then click Continue.

  3. Under the Foreign pension income heading, select the relevant item from the dropdown menu.

  4. Enter the amount you received from your foreign pension, in Canadian dollars, in the designated field of the tax software.

  5. On the QUICK ENTRY tab, click the QUICK SLIP icon. You’ll find yourself here:

    QUICKSLIP_EN.png

  6. Type Unused RRSP contributions in the search field and either click the highlighted selection or press Enter to continue.

  7. Complete the Your RRSP contributions section (make sure you enter the same amount entered on the Foreign tax credit (T2209) page).

  8. Enter your 2016 RRSP/PRPP deduction limit as shown on your most recent Notice of Assessment.

  9. Under the Your RRSP transfers heading, select Yes to the question, Did you receive any money you reported as part of your income for 2016, but actually transferred into your RRSP (for example, severance pay or accumulated income payments (AIPs) from a registered education savings plan)?.

  10. Enter the amount you’re transferring to your RRSP in field labelled, How much did you transfer to your RRSP?.

 

 

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