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:
Will the attribution rules in subsection 146(8.3) apply to withdrawals from a spousal RRSP?
Position: Yes.
Reasons:
Where amounts are withdrawn from a spousal RRSP, the attribution rules will apply if the annuitant's spouse contributed to a spousal RRSP in the year of withdrawal or in the previous two years.
XXXXXXXXXX 2002-013610
M. P. Sarazin, CA
May 23, 2002
Dear XXXXXXXXXX:
Re: Taxation of Spousal RRSP Withdrawals
This is in reply to your letter of April 16, 2002, requesting our views regarding the taxation of amounts withdrawn from a spousal registered retirement savings plan ("RRSP").
In your letter you have outlined what is an actual fact situation related to proposed transactions. As noted in Information Circular 70-6R4, this directorate can only provide advance income tax rulings in respect of specific proposed transactions. We must advise you that the review of completed transactions falls within the responsibility of tax services offices. Information Circulars and Interpretation Bulletins are available at your local tax services office or on the internet at www.ccra-adrc.gc.ca/formspubs/menu-e.html. Consequently, we can only provide you with the following general comments.
A spousal RRSP will be created where a taxpayer makes a contribution to his or her spouse or common-law partner's RRSP. The Canada Customs and Revenue Agency's general views regarding the taxation of spousal RRSPs are found in Interpretation Bulletin IT-307R3 entitled "Spousal Registered Retirement Savings Plans". Paragraphs 14 to 21 of IT-307R3 will answer all of your questions on the taxation of amounts withdrawn from a spousal RRSP. Generally, the special attribution rules in subsection 146(8.3) of the Income Tax Act will apply where an annuitant withdraws an amount from a spousal RRSP and the annuitant's spouse has contributed to a spousal RRSP for that annuitant in the year of withdrawal or in the two previous years.
You have also questioned the computation of the 2001 earned income used in the 2002 RRSP Deduction Limit Statement that was mailed to your wife on April 8, 2002. Because of a system error, the 2001 earned income may have been misstated in certain 2002 RRSP Deduction Limit Statements processed between March 28 and April 18, 2002. We have been advised that your wife will receive a system-generated reassessment to correct her 2002 RRSP Deduction Limit Statement.
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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