The MoneyReady Forum
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I will be receiving a defined benefit pension from my employer, but have taken some leave. I plan to buy back that leave just before retirement, by transferring funds directly from an RRSP account. The funds would move "in kind", so that no tax is due.

My question is: Is there a way, in the app, to perform this transfer?

If not, having a way to show funds being withdrawn from the RRSP without generating a tax bill would do the trick. I can manually increase the pension income to recognize the change made to the pension by the buy-back.

What's the best way to show this transaction?

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You can create an AUTOMATIC WITHDRAWAL.

From the  Select Account for deposit/withdrawal dropdown menu, select the RRSP you want to withdraw from.

From the Select Contributor of deposit or recipient of withdrawal dropdown menu, select "Other". Normally taxes are applied to the owner of the account, but making the recipient "Other" will make it not taxed.

Then fill in the amount and the dates to begin and end (same date for a lump sum).

The funds will be taken from the account tax-free and will be considered already spent. It'll show up as "Withdrawal to Other" in the year report.

You can adjust the pension income for that entry in INCOMES.

 

 

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Great. What a nice simple solution. Thanks for the quick response, too.