T4A-RCA: Statement of Distributions from a Retirement Compensation Agreement (RCA)

Your T4A-RCA slip reports the amounts distributed to you from a retirement compensation arrangement (RCA), as a beneficiary of the RCA or if you sold an interest in it. The slip also shows the income tax that was deducted from the amounts distributed to you.

Note: If you’re a Québec resident, the amounts you received from an RCA are shown in box D-1 of your RL-1 slip.

What’s an RCA?

An RCA is a plan or an arrangement under which an employer, former employer, and in some cases an employee, makes contributions to a person or partnership, referred to as a custodian. The custodian holds the funds in trust and distributes them to the employee, or another person, if the following occurs:

  • The employee retires
  • The employee faces loss of an office or employment or
  • Any substantial change in the services the employee provides

An employer or former employer can also buy interest in an RCA (such as a life insurance policy, including an annuity) to fund benefits for any of the situations listed above. 

Where do I enter this?

Follow these steps in H&R Block’s 2018 tax software:

  1. On the QUICK ENTRY tab, click the QUICK SLIP icon. You will find yourself here:

    DIY18_QUICKSLIP_EN.png

  2. Type T4A-RCA in the search field then click the highlighted selection or press Enter to continue.

  3. When you arrive at the page for your T4A-RCA, enter your information into the tax software.

I need help completing this page

  • How much of the income you received from this RCA is eligible for an other deduction (line 232)? - If you included an amount from box 14, 16, or 20 from your T4A-RCA in your income for the year, you might be able to claim a deduction for it on your return. Enter the amount for either A or B in this field (based on the calculation below), whichever is less:

    A = the total amount from this RCA you included in your income for the year

    B = (C minus D) where:

    C = the total amounts transferred from another RCA plus:

    • If you contributed amounts directly to this RCA that were non-deductible: the amounts you contributed to this RCA before the end of the year while it was RCA. Don’t include employee contributions from box 20 of your T4 slip
    • If you bought an interest in an RCA: amounts you paid before the end of the year (while you were a resident of Canada) to acquire an interest in the RCA, and
    • If you sold an interest in an RCA: amounts received or receivable (when you were a resident of Canada) as proceeds of the sale.

    D = the total amounts transferred to another RCA and all amounts you deducted in an earlier year for amounts you received for this RCA (don’t include a deduction you claimed for amounts you received out of the RCA as a retiring allowance)

  • If you transferred the eligible part of your retiring allowance to your RPP, how much did you transfer? - If your employer contributed to this RCA, you might be able transfer the eligible portion of the amount you received as a retiring allowance from this RCA to your registered pension plan (RPP) on which you’re the annuitant or member. If you transferred the eligible part of your retiring allowance from your RCA to your RPP, enter the transferred amount in this field. H&R Block’s tax software will automatically claim a deduction for the amount you transferred.
  • If you transferred the eligible part of your retiring allowance to your RRSP, PRPP, or SPP, how much did you transfer? - If your employer contributed to this RCA, you might be able transfer the eligible portion of the amount you received as a retiring allowance from this RCA to your registered retirement savings plan (RRSP) or an individual account under a pooled retirement pension plan (PRPP) or specified pension plan (SPP) under which you’re the annuitant or member. If you transferred the eligible part of your retiring allowance from your RCA to your RRSP, PRPP, or SPP, enter the transferred amount in this field. H&R Block’s tax software will automatically claim a deduction for the amount you transferred.
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