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Principal Issues: Will amounts withdrawn from certain spousal RRSPs be subjected to subsection 146(8.3) of the Act where the recipient's spouse makes contributions to another spousal RRSP?
Position: Yes.
Reasons: Subsection 146(8.3) applies where there is a withdrawal from a spousal RRSP and the recipient's spouse made contributions to any spousal RRSP in the two immediately preceding taxation years.
XXXXXXXXXX 2000-002901
M. P. Sarazin
August 25, 2000
Dear Sir:
Re: Spousal Registered Retirement Savings Plan and Attribution Rules
This is in response to your E-mail of May 30, 2000, requesting clarification regarding the application of the attribution rules to spousal registered retirement savings plans ("RRSPs").
You have made contributions to several RRSPs under which your wife is the annuitant ("spousal RRSPs"). Most recently, in 1999 you contributed an amount to a specific spousal RRSP. You have received conflicting information with respect to the application of subsection 146(8.3) of the Income Tax Act (the "Act") should your wife withdraw amounts from spousal RRSPs established prior to 1999.
Subsection 146(8.3) of the Act applies where funds are withdrawn in a particular taxation year from an RRSP and a deduction is made under subsection 146(5.1) of the Act for premiums paid to an RRSP in that taxation year or in one of the two immediately preceding taxation years.
The fact that there are several spousal plans does not alter the application of subsection 146(8.3) of the Act. This subsection considers the contributions to any spousal plan rather than to a specific spousal plan. So long as your wife is the annuitant under a spousal plan to which you have made a deductible contribution under subsection 146(5.1) of the Act, the withdrawal from any spousal plan in your wife's name will bring into your income the lesser of the amount withdrawn and the total of contributions you made under subsection 146(5.1) of the Act to all spousal plans in that year or in one of the two immediately preceding taxation years.
The form T2205 E Calculating Amounts from a Spousal RRSP or RRIF to Include in Income, a copy of which is enclosed, provides detailed instructions on how to calculate the amounts that must be reported as income in these circumstances. Additional copies of this form may also be obtained from your local tax services office and is available on the internet at http://www.ccra-adrc.gc.ca/E/pbg/tf/t2205eq/README.html.
We trust that the above comments will be of assistance.
Yours truly,
Patricia Spice
for Director
Financial Industries Division
Income Tax Rulings Directorate
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