15 September 1992 Income Tax Severed Letter 9226061 - Home Buyers Plan Transfers from Other Plans

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.

September 15, 1992
Issue Sheet

E9226065, 24(1)
1. Are amounts transferred to an rrsp from other
deferred plans eligible for the program

Ans. Yes. See discussion below at 3.

• 2. What if they are transferred into the RRSP after February 26?

Ans. There are no consequences resulting from when these
transfers are made.
3. Are contributions made in January and February
(<26th) eligible if they were not deducted in
computing 1991 taxable income?

Ans. The Proposal was drafted to prevent anyone from
obtaining a tax advantage under the program by putting funds
into an RRSP with the intent of immediately taking them out
tax free under the program. The restrictions proposed in
effect prevents premiums made to an RRSP after February
25,1992, with one exception, from being removed from the
RRSP on a tax free basis under the program. Premiums
contributed after February 25 and deducted in contributing
1991 income are the exception from this rule.

Document Disclosed Pursuant to The Access To Information Act Document Divulgué en vertu de la loi sur l'accès à l'information

Funds contributed before February 26, 1992 are qualified whether or not a deduction is claimed for them in respect of any year.

Any amount may be withdrawn from an RRSP and used under the terms of the program including amounts contributed after February 25, 1992. However, if such amounts are used the offensive portion must be added back to income for 1992 under the provisions of proposed subsection 146.01(8). This section provides (in simple terms) that an amount must be included in the annuitants income for 1992 which is equal to the lesser of

• 1. the total of all premiums made to an RRSP after February 25, 1992 and before March 2, 1993 other than excluded premiums; and
• 2. the amount withdrawn under the program.

Excluded premiums is defined at 146.01(1) to mean any premium:

• • designated under paragraphs 60(j),(j.1),(J.2) or (l);
• • transferred directly from an RRSP,RPP, RRIF or DPSP;
• • deducted under 146(6.1) (prescribed premiums); or
• • deducted in computing the individuals 1991 income.

4. How are these contributions handled?
Ans. There are no problems.

Document Disclosed Pursuant to The Access To Information Act Document Divulgué en vertu de la loi sur l'accès à l'information