Jacques – Tax Court treats a 401(k) plan as a savings plan rather than as a superannuation or pension plan

Graham J found that a 401(k) plan before him was a savings plan rather than a superannuation or pension fund or plan, so that a payment of the balance in the fund to the Canadian beneficiary was not income in her hands. Although he also was influenced by the right of an employee under the plan to significantly vary the amount contributed (from nil to 50% of his or her compensation), and to make early withdrawals, what influenced him the most was that generally distributions out of the Plan were to be made in a single lump sum payment. This did not satisfy the test in Woods that:

A superannuation or pension fund or plan is an arrangement which provides for payment of regular post-retirement income to employees… .

Neal Armstrong. Summary of Jacques v. The Queen, 2016 TCC 245 under s. 248(1) - superannuation or pension benefit.