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 spousal RRSP be transferred to a non-spousal RRSP where the spouses are living separate and apart by reason of a breakdown of their marriage and therefore the attribution rule in 146(8.3) would not be applicable?
Position: Yes.
Reasons: However, the transfer will change the status of the transferee "non-spousal" RRSP to that of a "spousal RRSP". An RRSP is a "spousal RRSP" when the RRSP has received a contribution from a taxpayer at a time that the taxpayer was the spouse of the annuitant of the RRSP (or the RRSP has received a payment from another RRSP or RRIF that was a spousal plan).
XXXXXXXXXX 2000-002563
G. Kauppinen
August 11, 2000
Dear XXXXXXXXXX:
Re: Status of a Spousal Registered Retirement Savings Plan ("RRSP")
This is in reply to your facsimile transmission dated May 11, 2000 regarding spousal RRSPs.
You advise that as a result of your separation from your husband, all property held in RRSPs of which your husband was the annuitant was transferred to your RRSP. You further indicate that you are now the annuitant of 2 types of RRSP plans being (1) your "self-directed" RRSP and (2) the "spousal" RRSP. You have asked if you can transfer the assets held by your "spousal" RRSP to your "self-directed" RRSP in order to reduce the administration cost of maintaining a separate spousal account and to better manage your RRSP investment portfolio.
We have advised issuers or carriers of RRSP plans (e.g. banks) that they are required to maintain records of the status of an RRSP as a "spousal" RRSP even if the spouses are separated or divorced. The status of an RRSP is established when a contribution is made to an RRSP by a taxpayer who is the spouse of the annuitant of the RRSP at the time the contribution is made, or a transfer is made from a spousal plan to the plan in question. The status of a spousal RRSP is required to be maintained because of the potential attribution under subsection 146(8.3) of the Income Tax Act of income from a spousal RRSP when divorced or separated spouses have re-married or reconciled at the time a withdrawal is made by the annuitant of the RRSP.
If the assets of a an individual's spousal RRSP are transferred to that individual's non-spousal RRSP (or vice-versa), the transferee RRSP will be a spousal RRSP for purposes of the Income Tax Act. However, this will only be relevant for the attribution rule discussed above.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2000
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2000
Email this Content