17 November 2004 External T.I. 2004-0102361E5 - Transfer RRIF to Spousal Trust

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.

Principal Issues: Is it possible under the Income Tax Act to transfer property on a tax-deferred basis from an individual's RRIF to a joint spousal trust?

Position: No.

Reasons: Subsections 146.3(14), 146.3(14.1) and paragraphs 146.3(2)(e) and 60(l) describe the transfers that can made from an RRIF on a tax-deferred basis and a transfer to a joint spousal trust is not included.

XXXXXXXXXX

November 17, 2004							2004-010236
G. Allen

Dear XXXXXXXXXX:

Re: Transfer of a RRIF to a Joint Spousal Trust

This letter is in reply to your letter dated September 1, 2004 wherein you enquired whether it is permissible under the Income Tax Act (the "Act") to transfer property on a rollover basis from a registered retirement income fund (RRIF) to a joint spousal trust. We assume from your letter that when you refer to "rolling over" your RRIF to a joint spousal trust, you are referring to transferring property from your RRIF to a joint spousal trust on a tax-deferred basis.

Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request. For more information concerning advance tax rulings, please refer to Information Circular 70-6R5 dated May 17, 2002. Copies of information circulars and other publications are available at your local Tax Services Offices or on the Internet at http://www.ccra-adrc.gc.ca/formspubs/menu-e.html. Where the particular transactions are completed, the enquiry should be addressed to the relevant Tax Services Office. However, we are prepared to provide the following general comments, which may be of assistance.

Subsections 146.3(14), 146.3(14.1) and paragraphs 146.3(2)(e) and 60(l) of the Act describe the transfers that may be made from an individual's RRIF on a tax-deferred basis. A transfer of property from an RRIF to a joint spousal trust is not described in the above-noted subsections nor paragraphs of the Act. We would refer you to Charts 4 and 5 in Chapter 5 of the RRSPs and Other Registered Plans for Retirement Guide (T4040), for a description of the transfers that may be made from an individual's RRIF on a tax-deferred basis.

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