2000 2000-0040241 - TRANSFER FROM 401(K) TO IRA TO RRSP

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: Amend the proposed transactions described in Ruling Letter 2000-001463?

Position: Yes.

Reasons: The taxpayer will determine the amount of his IRA that will be transferred to an RRSP.

XXXXXXXXXX
XXXXXXXXXX 								2000-004024
XXXXXXXXXX 

XXXXXXXXXX, 2000

Dear Sir:

Re: XXXXXXXXXX
Advance Income Tax Ruling 2000-001463, dated XXXXXXXXXX, 2000

This is in reply to your letter of XXXXXXXXXX, wherein you requested an amendment to the proposed transactions described in the above-referenced Advance Income Tax Ruling (hereinafter referred to as the "Ruling Letter").

Any reference herein to paragraphs are references to those contained in the Ruling Letter and any defined terms used in the letter have the meanings assigned to them in the Ruling Letter.

The Ruling Letter is hereby amended as follows:

1. Paragraph 10 is hereby deleted and replaced by:

"10. The Individual will arrange for the withdrawal of the amounts held in his IRA in respect of the amount transferred from the Plan. The Individual will contribute an amount withdrawn from the IRA to his RRSP in the same year as the amount is withdrawn from the IRA or within 60 days after the end of the year that the amount is withdrawn from the IRA. The amount contributed may be less than or equal to the gross amount withdrawn from the IRA before U.S. withholding taxes."

Notwithstanding the above change, we confirm that, subject to the conditions set out therein, the rulings given in the Ruling Letter will continue to be binding on the Canada Customs and Revenue Agency in accordance with the practice outlined in Information Circular 70-6R3 dated December 30, 1996, provided that the proposed transactions are completed by XXXXXXXXXX.

Yours truly,

XXXXXXXXXX
for Director
Financial Industries Division
Income Tax Rulings Directorate