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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: If the assets of a spousal RRIF are transferred to a RRIF that is not a spousal RRIF will the resulting RRIF be a spousal RRIF?
Position: Yes.
Reasons: Definition of "spousal plan" in 146(1).
XXXXXXXXXX 2002-013127
G. Kauppinen
April 16, 2002
Dear XXXXXXXXXX:
Re: Registered Retirement Income Funds ("RRIFs")- Spousal Plans
This is in reply to your letter dated January 31, 2002 regarding spousal RRIFs. Specifically, you ask, if the assets of a spousal RRIF are transferred to a RRIF that is not a spousal RRIF, will the resulting RRIF be a spousal RRIF.
Opinions concerning proposed transactions involving specific taxpayers will only be provided in response to a request for an advance income tax ruling. For more information concerning advance tax rulings, please refer to Information Circular 70-6R4 dated January 29, 2001, issued by the Canada Customs and Revenue Agency. Copies of information circulars and interpretation bulletins are available from your local tax services office or on the Internet at the following site - http://www.ccra-adrc.gc.ca/formspubs/menu-e.html.
Pursuant to the definition of "spousal or common-law partner plan" in subsection 146(1) of the Income Tax Act, a spousal RRIF means a registered retirement income fund that has received a payment out of or a transfer from another RRIF that was a spousal RRIF or from a registered retirement savings plan ("RRSP") that was a spousal RRSP.
Accordingly, once a spousal plan has been established, any transfers of property from that plan to another plan will cause the other plan to be a spousal plan; so, to answer your specific question, if the assets of a spousal RRIF are transferred to a RRIF that is not a spousal RRIF, the resulting RRIF will be a spousal RRIF.
We trust our comments will be of assistance to you.
Yours truly,
Roberta Albert, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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