Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Can a retiring allowance be transferred to an RRSP after it has matured or to a RRIF, where it is impossible for an employer to process a transfer prior to a plan's maturity.
Position:
No.
Reasons:
The tax provisions clearly prevent such transfers.
972585
XXXXXXXXXX W.C. Harding
October 29, 1997
Dear Sir:
Re: Transfer of Retiring Allowances to RRSPs and RRIFs
This is in reply to your letter of September 25, 1997, concerning the above noted topic.
Written confirmation of the tax implications inherent in particular proposed transactions can only be given by this Directorate where the transactions are outlined in a request for an advance income tax ruling submitted in the manner set out in Information Circular 70-6R3. Accordingly, at this time, we can not provide a specific answer to your query. However, we can advise that the Income Tax Act does not permit the transfer of retiring allowances to a RRIF or to a matured RRSP. Accordingly, if your RRSP matures on December 31, 1997, any transfer must be made on or before that date.
We trust these comments will be of assistance.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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