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 after a divorce and therefore the attribution rule in 146(8.3) would not be applicable?
Position: Yes. However, the transfer will change the status of the transferee "non-spousal" RRSP to that of a "spousal RRSP".
Reasons:
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 2000-004439
W. C. Harding
October 23, 2000
Dear XXXXXXXXXX:
Re: Transfer of funds between Registered Retirement Savings Plans ("RRSP")
This is in reply to your letter of August 17, 2000 in which you asked if funds could be transferred from your "spousal" RRSP to your personal RRSP. You indicate that you were divorced in 1999 so there is no need to keep two RRSPs and you would like to consolidate them into one plan.
There are no provisions in the Income Tax Act (the "Act") that prevent the transfer of funds from one to another of your RRSPs. However, issuers of RRSP plans 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 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 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 Act. However, this will only be relevant for the attribution rule discussed above.
Although no specific form is required under the Act to be used to record the transfer of funds from one RRSP to another, form T2033 (available on our website at http://www.ccra-adrc.gc.ca/E/pbg/tf/t2033ez/t2033e.pdf ) may be used.. However each financial institution may create its own unique form or transfer electronically and your issuer will be able to advise concerning this matter.
We trust this explanation will be of assistance to you.
Yours truly,
P. Spice
for Director
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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