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.
XXXX
R. Nanner (613) 957-3494
February 3, 1988
Dear Sir:
We are writing in reply to your letter of December 16, 1987 concerning transferability of a commuted registered retirement savings plan (RRSP) annuity to a registered retirement income fund (RRIF) pursuant to subsection 146(16) of the Income Tax Act (the "Act").
Proceeds of a commuted RRSP annuity (provided the annuity contract allows for commutation) or each annuity payment may be transferred into a RRIF in the name of the annuitant of the RRSP. The transfer must be a direct transfer from the carrier of the RRSP to the carrier of the RRIF and must be before the year in which the transferor attains 72 years of age.
With respect to your question on "RRSP annuity", please note that this term is not defined in the Act. Paragraph 146(1)(i.l) of the Act, however, defines retirement income to include, an annuity commencing at maturity, and with or without a guaranteed term commencing at maturity, not exceeding the term of 90 years minus either (a) the age in whole years of the annuitant at the maturity of the plan, or (b) where the annuitant's spouse is younger than the annuitant and he so elects, the age in whole years of his spouse at the maturity of the plan, payable to (i) the annuitant for his life, or (ii) the annuitant for the lives, jointly, of the annuitant and his spouse and to the survivor of them for his or her life. This would include a deferred annuity contract, registered with Revenue Canada, Taxation, issued by a life. insurance corporation.
We hope these comments are of assistance to you.
Yours truly,
for Director Financial Industries Division Rulings Directorate
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