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:
Can a RRIF carrier with two separate RRIFs with the same annuitant make a single minimum payment for the two RRIFs out of either one of the RRIFs?
Position: No.
Reasons:
Under the registration provisions, each RRIF is required to make its own minimum payment to the annuitant under the plan. Confirmed with Registered Plans Division.
XXXXXXXXXX 2002-013390
M. P. Sarazin, CA
May 21, 2002
Dear XXXXXXXXXX:
Re: Minimum Amount and Multiple Registered Retirement Income Funds ("RRIFs")
This is in reply to your letter of April 5, 2002, requesting our views as to whether an annuitant having more than one RRIF with a specific RRIF carrier can have the minimum payments required from all of the RRIFs with that RRIF carrier paid out of one of the RRIF plans.
The Canada Customs and Revenue Agency's general views regarding the registration requirements for RRIFs are found in Information Circular 78-18R5 entitled "Registered Retirement Income Fund". Information Circulars are available at your local tax services office or on the internet at www.ccra-adrc.gc.ca/formspubs/menu-e.html.
In order to have a specimen plan registered, the RRIF carrier has to agree to pay the minimum amount for each year from the plan to the annuitant. In our view, the provisions of section 146.3 of the Income Tax Act and the rules for registration apply to each individual plan held by an annuitant with a RRIF carrier. Consequently, the RRIF carrier would not be allowed to pay the minimum payment for one plan from another plan held for the same annuitant.
We trust that the above comments will be of assistance to you.
Yours truly,
Roberta Albert, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
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