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.
Revenu Canada Taxation Head Office
T.D. Peters (613) 957-3499
October 10, 1986
Dear Sirs:
XXXX
We concur with your understanding that when the surviving spouse is over 71 and rolls the proceeds of a deceased spouse's RRSPs into his or her own name the options available are to take a lump sum and pay taxes on it, purchase term certain annuity to age 90 or to purchase a life annuity with no guaranteed period.
The current provisions of paragraph 146.3(2)(f) of the Income Tax Act (the "Act") do not provide for the rolling into a registered retirement income fund ("RRIF") an amount received from a registered retirement savings plan ("RRSP") as a refund of premiums.
We would point out, however, that the Notice of Ways and Means Motion tabled in the House of Commons June 11, 1986 proposed a change to paragraph 146.3(2)(f) and paragraph 60(1) of the Act. While not yet law, these changes would allow both a deduction and a transfer to a RRIF in respect of property, including money, received by the taxpayer who included the amount in computing his income for the year as a refund of premiums out of or under a RRSP under which the taxpayer's spouse was the annuitant. This change, if adopted, is expected to be applicable for 1986 and subsequent year and therefore could eliminate the inequity you have noted in the case of XXXX if he pays the amount in the year he received it or within 60 days after the end of the year to a carrier as consideration for a RRIF under which he would be the annuitant and he designates such an amount in his return of income for the year.
We trust these comments will be of assistance to you in this matter.
Yours truly,
for Director Financial Industries Division Rulings Directorate Legislative and Intergovernmental Affairs Branch
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