This is a question for those familiar with RRSP and Cdn tax laws.
I was laid off last year and am about to receive my severance payout next week. We were told by my employer that we had the option of having some or all of our severance rolled over directly in to RRSPs. I was Googling today (to check on the next question I have) and I kept finding information stating that you can't roll a severance payout directly into RRSPs unless you were employed with the co. prior to 1995 and even then there are limitations of how much you can roll over. Does this sound correct? It's the first I've heard of it.
My second question is this.... if I am able to directly roll over some or all of my severance to RRSPs, will I receive an RRSP receipt that I could claim on my taxes. I was in to see my financial advisor yesterday and I'm pretty sure that he told me that I would NOT receive a receipt because it wasn't money I had paid taxes from (or something like that). I was surprised. I assumed since the severance will be considered as income that I would receive a receipt for any I rolled in to RRSPs. Does this sound correct?
I was laid off last year and am about to receive my severance payout next week. We were told by my employer that we had the option of having some or all of our severance rolled over directly in to RRSPs. I was Googling today (to check on the next question I have) and I kept finding information stating that you can't roll a severance payout directly into RRSPs unless you were employed with the co. prior to 1995 and even then there are limitations of how much you can roll over. Does this sound correct? It's the first I've heard of it.
My second question is this.... if I am able to directly roll over some or all of my severance to RRSPs, will I receive an RRSP receipt that I could claim on my taxes. I was in to see my financial advisor yesterday and I'm pretty sure that he told me that I would NOT receive a receipt because it wasn't money I had paid taxes from (or something like that). I was surprised. I assumed since the severance will be considered as income that I would receive a receipt for any I rolled in to RRSPs. Does this sound correct?
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