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 amounts held in an RCA be transferred to an RRSP or RPP?
Position: No.
Reasons:
There is no provision allowing for the rollover of amounts from an RCA to an RRSP or RPP on a tax-deferred basis.
XXXXXXXXXX 2002-018010
March 3, 2003
Dear XXXXXXXXXX:
Re: Retirement Compensation Arrangement Transfers to Deferred Plans
This is in response to your letter of December 12, 2002, wherein you requested our views as to whether the property held by a retirement compensation arrangement ("RCA") could be transferred, on a tax-deferred basis, to a registered retirement savings plan ("RRSP") or a registered pension plan ("RPP").
There is no provision in the Income Tax Act (the "Act") that allows for the transfer, on a tax-exempt basis, of amounts held in an RCA to either an RRSP or an RPP. Any amounts withdrawn from an RCA would be taxable in the hands of the RCA beneficiary. We note that amounts can only be transferred between registered plans on a tax-deferred basis. The Canada Customs and Revenue Agency's general views regarding the transfers between registered plans are found in Interpretation Bulletin IT-528 entitled Transfers of Funds Between Registered Plans. The Interpretation Bulletin is available from your local tax services office or on our internet site at: www.ccra-adrc.gc.ca.
We hope these comments will be of assistance to you.
Yours truly,
Mickey Sarazin, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
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