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: Whether a transfer of property from a RRIF to an IPP is a qualifying transfer for purposes of subsection 8303(6) of the Regulations?
Position: No.
Reasons: The definition of a qualifying transfer in subsection 8303(6) of the Regulations lists the various acceptable transfers. A transfer from a RRIF is not included and as such is not a qualifying transfer.
CALU Roundtable - May 2024
Question 8 - IPPs and Past Service Contributions
Where an Individual Pension Plan (IPP) (endnote 1) is established and a plan member is aged 71 in the effective year of the plan, would the Registered Plan Directorate allow the qualifying transfer which is required as part of a Past Service contribution (typically satisfied by a transfer of the required asset value from a Registered Retirement Savings Plan) to be satisfied by the transfer of the required asset value from a Registered Retirement Income Fund (RRIF)?
CRA Response
No. A transfer of property from a RRIF to a defined benefit provision of a registered pension plan (including an IPP) is not a qualifying transfer for purposes of subsection 8303(6) of the Income Tax Regulations.
Todd Baldwin/Paul K. Taylor, Registered Plans Directorate
2024-100712
May 7, 2024
ENDNOTES
1 Defined in subsection 8300(1) of the Income Tax Regulations.
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