Retirement Income Planning Requires Precise RRSP Contributions

It appears CRA is auditing taxpayers who have excess contributions in their RRSPs these days, this can be a nightmare for those who find form T1-OVP daunting. Updated by the agency on February 9, it is worth taking a look at the new simplified version, which hopefully will make life a bit easier for tax practitioners and financial advisors alike. Check out the following links:

• T1-OVP Individual Tax Return for RRSP Excess Contributions
• T1-OVP-S Simplified Individual Tax Return for RRSP Excess Contributions

In addition, a new guide was posted providing instructions for the reporting of Retirement Compensation Arrangements. The guide covers employer responsibilities relating to application for an RCA Account Number (Form T733), how to withhold and remit the refundable tax, how to report contributions made (Form T737-RCA), how to complete the T737-RCA slip and summary, and how to report the deductible RCA contributions to the employee. In addition the responsibilities of the custodian are outlined and penalties and interest costs described for those who fail to comply with withholding, remitting or filing requirements. For more information see T4041 Retirement Compensation Arrangements Guide 2007

The Knowledge Bureau is pleased to offer a new designation program for those consulting with clients in retirement income planning. The Retirement Income Specialist Program under the MFA Designation is now available. Please click here for more information.